FX.co ★ Gold Halts Four-Week Rally

Gold edged towards $3,630 per ounce on Friday, marking its third straight session of losses and setting the stage for its first weekly decline in four weeks. Investors continued to assess the Federal Reserve's outlook following the central bank's first reduction of its benchmark rate since December. While this action left open the possibility of further cuts, policymakers warned that ongoing inflation could slow the pace of any additional reductions. Federal Reserve Chair Jerome Powell characterized the rate cut as a careful reaction to a cooling labor market, highlighting that the central bank is cautious about initiating a more aggressive easing cycle. Despite recent setbacks, gold has surged approximately 39% this year, consistently reaching record highs driven by anticipated Fed easing, ongoing geopolitical tensions, and robust demand from central banks. Meanwhile, official data revealed a 254% surge in Swiss gold exports to China in August compared to July.