By Brijesh Patel
(Reuters) – Gold prices were flat on Friday as the Federal Reserve’s 25-basis-point rate cut and the outlook on further easing in the months ahead failed to meet the investors’ dovish expectations, while markets awaited more cues into U.S. policy path.
Spot gold was little changed at $3,646.23 per ounce as of 0311 GMT. Bullion had hit a record high of $3,707.40 on Wednesday.
U.S. gold futures for December delivery were also flat at $3,678.90.
“Sentiment is still bullish but has definitely cooled off a bit. Basically, the Fed didn’t really deliver with the dovish guidance needed for gold to push higher,” Capital.com analyst Kyle Rodda said.
“The forecast of only one cut in 2026 was above market pricing and has had the effect of pushing up yields and the dollar,” Rodda added.
“We need something now to reverse that dynamic for gold to make another solid run above $3,700. Some weak U.S. data would probably do the trick.”
The Fed resumed rate cuts on Wednesday and opened the door to further easing, but tempered its message with warnings of sticky inflation, sowing doubt over the pace of future easing.
Fed Chair Jerome Powell characterised the policy action as a risk-management cut in response to the weakening labour market and said the central bank was in a “meeting-by-meeting situation” regarding the rate outlook.
Traders are pricing in a 92% chance of another 25-basis-points cut at the Fed’s October meeting, per the CME Group’s FedWatch tool.
Lower rates reduce the opportunity cost of holding non-yielding bullion.
The number of Americans filing new applications for unemployment benefits fell last week, data showed, but the labour market softened as demand for and supply of workers have diminished.
Elsewhere, spot silver rose 0.7% to $42.11 per ounce, platinum gained 0.2% to $1,386.10. Palladium, up 0.6% at $1,157.49, was headed for weekly fall, losing 3.3% so far this week.
(Reporting by Brijesh Patel in Bengaluru; Editing by Sumana Nandy)
