Commodities

Gold Retreats After Topping $2,200 an Ounce for the First Time

  • Fed maintained forecast for rate cuts despite faster inflation
  • Bullion has rallied about 10% since the middle of February

A processed gold bar tested at a gold exchange house in Pocone, Mato Grosso state, Brazil.

Photographer: Arthur Menescal/Bloomberg
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Gold retreated after surging above $2,200 an ounce for the first time on conviction that the Federal Reserve will cut interest rates this year.

The precious metal rose as much as 1.6% to a record $2,220.89 in early trading before erasing gains to drop as much as 0.9%. Gold has rallied nearly 10% since mid-February as the outlook for looser US monetary policy triggered fresh investor bets on bullion.