The price of the yellow metal fell after the Federal Open Market Committee (FOMC) meeting decided to cut interest rates by 25 basis points, opening the possibility of further policy easing by the end of 2025.
At 9.10 am, gold prices were at $3,660, unchanged since the opening of early trading on Thursday in the Asian session.
Support for policy easing came as the Fed saw the jobs report approaching maximum territory amid inflationary pressures.
By and large, Fed officials set a 25 basis point cut as expected, except for Stephen Miran who opted for a 50 basis point cut.
Meanwhile, the central bank said that inflation was rising high and set the consensus for economic growth to moderate in the first half of 2025.
The Summary of Economic Projections (SEP) revealed that a 50 basis point cut is expected by the end of the year as the median estimate of the broad funds rate will reach 3.60%.
During a press conference, Fed Chairman Jerome Powell said that job demand in the US is starting to ease and inflation remains high.
He added that the balance of risks is changing as policy is well-positioned to respond in a timely manner, noting that there is no widespread support for the proposed 50 basis point cut at this time.
