Commodities
Gold Rises to Record After Fed Makes First Rate Cut Since 2020
- Fed reduces rates by half-point to defend US economy
- Gold erases gains as Powell says not to see this as new pace
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Gold pulled back from a record high after Federal Reserve Chairman Jerome Powell signaled policymakers aren’t in a rush to aggressively lower interest rates following Wednesday’s half percentage point cut by the US central bank.
Gold, which tends to benefit from lower rates, rose as much as 1.2% to $2,600.16 an ounce before erasing gains after Powell said no one should see this as a “new pace” at his press conference. Projections released after the Fed’s two-day gathering showed a narrow majority — 10 of 19 officials — favored lowering rates by at least an additional half-point over the central bank’s two remaining meetings this year.