Gold prices extended declines in Asian trading on Thursday, slipping from record highs as the U.S dollar rebounded after the Federal Reserve lowered interest rates in a widely expected move and signalled a measured approach to further policy easing.

Spot gold fell 0.7% to $3,635.55 an ounce by 02:24 ET (06:24 GMT), extending a nearly 1% loss from the previous session, where it reached a fresh record high of $3,707.40/oz.

U.S. Gold Futures for December delivery dropped 1.3% to $3,670.45.

Fed lowers rates by 25bps, cautious on future easing
The Fed lowered its benchmark rate by 25 basis points to a range of 4.00% to 4.25% on Wednesday, its first cut since December. Policymakers projected two additional cuts this year, but only one in 2026, underscoring a cautious stance.

Chair Jerome Powell said the reduction was a "risk-management cut" in response to softening labour market conditions and elevated employment risks.

He stressed that decisions would now be taken on a meeting-by-meeting basis, a signal that aggressive easing was unlikely.

"They think three more cuts will be enough to boost growth and prompt a revival in the jobs market, but the market is sceptical," ING analysts said.

The US Dollar Index rose 0.4% on Thursday, recovering from a 3-1/2 year low hit in the last session, making bullion more expensive for holders of other currencies.

Gold has gained nearly 39% so far this year, driven by expectations of monetary easing, geopolitical uncertainty and strong central bank purchases.

The Fed's cautious tone, however, prompted some investors to take profits after bullion's surge to record highs.

Metal markets drop as dollar rebounds
Other precious and industrial metals were pressured on Wednesday by a stronger greenback

Silver Futures dropped 1.1% to $41.72 per ounce, while Platinum Futures were largely unchanged at $1,370.80/oz.

Benchmark Copper Futures on the London Metal Exchange slipped 0.5% to $9,945.80 a ton, while U.S. Copper Futures also declined 0.5% to $4.60 a pound.

Source: Investing.com