Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Spot Gold retreated on Thursday after the Federal Reserve indicated just one interest rate cut this year, compared to three rate cuts projected in March, as inflation still remains elevated.

The US central bank left its federal funds rate target range without change at a 23-year high of 5.25%-5.50% for the seventh straight policy meeting in June, as largely expected.

Policy makers again noted it would not be appropriate to ease monetary policy until greater confidence was gained that inflation was moving sustainably toward the 2% objective.

The Federal Reserve did not revise its GDP growth forecasts, as it still expects a 2.1% expansion in 2024 and a 2% growth in 2025 and 2026.

However, the central bank revised up its core PCE inflation forecasts to 2.8% in 2024, from 2.6% in March, and to 2.3% in 2025, from 2.2% projected in March.

Meanwhile, annual headline consumer inflation in the United States unexpectedly eased to 3.3% in May from 3.4% in April, data showed just hours before the FOMC policy decision.

Annual core CPI inflation slowed to a more than three-year low of 3.4% in May from 3.6% in April.

“While the tamer consumer price index print was a net positive for gold, the takeaway from the Fed meeting was that the number of rate cuts in 2024 have been reduced and are still some distance down the road,” Tim Waterer, chief market analyst at KCM Trade, was quoted as saying by Reuters.

“In the short term, I expect gold could be trading in choppy fashion until we get greater clarity on when that first rate cut from the Fed may arrive.”

As of 7:17 GMT on Thursday Spot Gold was losing 0.40% to trade at $2,315.80 per troy ounce.

Gold Futures for delivery in August were retreating 1.03% on the day to trade at $2,330.60 per troy ounce.

Elsewhere, Silver Futures for delivery in July were down 2.82% to trade at $29.413 per troy ounce.

The US Dollar Index, which reflects the relative strength of the greenback against a basket of six other major currencies, was edging up 0.10% to 104.777 on Thursday.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Natural gas futures weekly recap, December 29 – January 2Natural gas futures weekly recap, December 29 – January 2 Natural gas rose on Friday, recovering from a steep drop during the previous session that pushed it to the lowest in more than two years, as weather forecasts called for colder-than-usual weather during the coming week.On the New York […]
  • Forex Market: AUD/USD daily trading forecastForex Market: AUD/USD daily trading forecast Yesterday’s trade saw AUD/USD within the range of 0.7237-0.7309. The pair closed at 0.7251, down 0.12% on a daily basis, while extending the loss from Friday. The daily low has been the lowest level since October 14th, when a low of 0.7195 was […]
  • Citigroup Inc share price down, pays $5 million to settle SEC caseCitigroup Inc share price down, pays $5 million to settle SEC case Citigroup Inc will pay a record fine to settle charges for failing to protect confidential equity trading data, the U.S. Securities and Exchange Commission announced on Friday, marking the latest regulator crackdown over alleged market […]
  • Forex Market: AUD/SGD trading forecast for MondayForex Market: AUD/SGD trading forecast for Monday Friday’s trade saw AUD/SGD within the range of 1.1584-1.1617. The pair closed at 1.1611, gaining 0.02% on a daily basis, while losing 0.05% for the whole week.Fundamental viewAustraliaAt 1:30 GMT on Monday the Australian Bureau of […]
  • Forex Market: NZD/USD daily forecastForex Market: NZD/USD daily forecast During yesterday’s trading session NZD/USD traded within the range of 0.8430-0.8531 and closed at 0.8440, losing 0.96% on a daily basis.At 11:16 GMT today NZD/USD was losing 0.28% for the day to trade at 0.8444. The pair touched a daily […]
  • Apple Inc. share price up, launches Apple PayApple Inc. share price up, launches Apple Pay This Monday Apple Inc. launched Apple Pay in the U.S., its new digital payment service, as the phone maker takes on a new market. The iPhone has already taken the place of many devices, including music players, GPS systems, watches, […]