New York, Sept 19 (V7N) – Gold prices fell on Thursday as investors booked profits following a record peak in the previous session, while markets assessed the Federal Reserve’s stance on future interest rate cuts.
 
Spot gold dropped 0.4% to $3,643.40 per ounce by 1:51 pm EDT (1751 GMT), and U.S. December gold futures settled 1.1% lower at $3,678.30. On Wednesday, spot gold briefly touched an all-time high of $3,707.40 before pulling back.
 
The U.S. dollar index strengthened 0.5%, making dollar-denominated commodities more expensive for holders of other currencies. On Wednesday, the Fed implemented its first rate cut since December, signaling the possibility of further easing, but also warned of persistent inflation, creating uncertainty about the pace of future policy adjustments.
 
Fed Chair Jerome Powell described the move as a risk-management step in response to a weakening labor market, while emphasizing that the central bank will not rush into further easing. “Some confusion around Powell’s comments prompted profit-taking,” said Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals.
 
Despite the short-term setback, analysts maintain that gold’s long-term bullish trend remains intact. “Every new high in gold adds credence to the $4,000 objective,” Grant added.
 
Gold has surged nearly 39% so far this year, benefiting from low interest rates and global economic uncertainty. Analysts at SP Angel noted that the diversification of dollar reserves by BRIC central banks, particularly China, remains a key driver for gold prices. Supporting this trend, gold exports from Switzerland to China jumped 254% in August compared to July.
 
Other precious metals also recorded gains. Spot silver rose 0.3% to $41.78 per ounce, platinum increased 1.6% to $1,384.95, and palladium added 0.5% to $1,160.25.
 
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