Gold prices fell slightly on Thursday (December 11th), as traders weighed the US Federal Reserve's split vote on a quarter-percentage-point interest rate cut, while silver rose to a new record high.
Spot gold fell 0.2% to $4,220.09 an ounce, as of 0947 GMT. US gold futures for February delivery rose 0.5% to $4,247.50 an ounce.
"It's just overpositioning (in gold) in anticipation of a rate cut, which did happen, and so you're seeing some selling pressure," said independent analyst Ross Norman, adding that gold's fundamentals remain intact.
The Fed cut interest rates by a quarter-percentage point on Wednesday in a rare, split vote, but signaled a pause on further easing as officials look ahead to assess the direction of the jobs market and inflation, which "remains somewhat elevated."
Lower interest rates typically benefit non-yielding assets like gold. Projections released after the two-day meeting showed most policymakers expect only one interest rate cut in 2026. Fed Chairman Jerome Powell gave no indication of when the next rate cut might occur.
US President Donald Trump said on Wednesday that the Fed's rate cut could be larger. Trump will announce a new Fed chairman early next year, with White House economic adviser Kevin Hassett the front-runner.
Investors now await November's non-farm payrolls and unemployment data, due on December 16, for further clues on the Fed's next move.
Spot silver rose 0.5% to $62.09 an ounce, after hitting a record high of $62.88 earlier in the session, bringing its year-to-date gain to 115% due to strong industrial demand, declining inventories, and its addition to the US critical minerals list.
"Silver's fundamentals remain very positive. There's been tremendous support with the critical minerals list, and we're likely to see some stockpiling," which will further exacerbate market tightness, Norman added. Elsewhere, platinum rose 0.8% to $1,669.73, while palladium rose 0.3% to $1,480.03. (alg)
Source: Reuters.com
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