Gold prices retreated in Asian trade on Thursday as investors reassessed the Federal Reserve’s latest policy shift. While the Fed delivered a widely expected 25-basis-point interest rate cut, Chair Jerome Powell emphasized a higher threshold for additional cuts, prompting a recalibration across precious metals.
Spot gold slipped 0.5% to $4,207.49 an ounce, while March futures edged up 0.3% to $4,235.50. The decline followed a week-long rally fueled by expectations of policy easing, leaving the metal vulnerable to profit-taking after the announcement.
The Fed’s updated guidance acknowledged easing inflation but highlighted uncertainties around future labor market resilience. This balanced tone kept traders cautious, even as the central bank rolled out a liquidity-boosting initiative to support financial conditions.
Silver Retreats After Record $62.8895 High
Silver prices, which have sharply outperformed gold this year, saw a modest pullback after touching a new record high in early Asian trade. Spot silver dipped to $61.8095 per ounce, down from an unprecedented $62.8895 high reached hours earlier.
Momentum in the white metal has been driven by:
- A more than 100% year-to-date gain in 2025
- Renewed optimism over tightening global supply
- Rising industrial demand expectations for 2026
- Its designation as a “critical mineral” by the U.S. government
- Heightened safe-haven interest amid geopolitical tensions
Silver’s strong performance continues to outshine gold’s trajectory, with traders pricing in structural demand from electronics, solar panels, and advanced manufacturing.
Fed Cut Sparks Mixed Moves Across Metal Markets
Broader metal markets traded in tight ranges following the Fed’s decision. While the interest rate cut met expectations, the central bank surprised traders by announcing a plan to resume Treasury bill purchases at a pace of $40 billion per month—a move widely interpreted as a dovish tilt.
Fed-led liquidity injections typically support non-yielding assets, but Thursday’s market reaction remained muted as investors digested Powell’s comments on maintaining a cautious approach. The Fed projected only one 25-basis-point cut in 2026, according to analysts at OCBC, reinforcing expectations of a gradual easing cycle rather than aggressive accommodation.
Key market shifts included:
- Spot platinum up 0.2% to $1,661.18
- LME copper futures up 0.4% to $11,608.45 per ton
- Treasury yields easing on renewed liquidity expectations
Gold’s earlier gains were tempered by profit-taking, though underlying support remains intact as long as real yields continue to drift lower.