Gold is still trading in negative territory for the second consecutive day around the $3,640 level after breaking a new record that triggered profit-taking and a moderate strengthening of the US dollar.
At 9.30 am, gold prices were at $3,647, up 0.07% since it opened in early trading on Friday.
The latest US Fed rate cut of 25 basis points and a signal of two more cuts by the end of the year, the Fed’s first move this year while keeping its key lending rate target range at 4.0% to 4.25%.
Fed Chairman Jerome Powell stated that the latest move to lower interest rates is to reduce risk management and he does not see the need for them to be rushed.
The less dovish stance from the US central bank provided some support to the US dollar and affected commodity prices, especially gold.
Additionally, rising geopolitical tensions in the Middle East continue to push up the price of the yellow metal, a traditional safe-haven asset.
Israeli media reports indicate that the military is preparing for a major ground offensive into Gaza City. For weeks, Israel has been laying the groundwork for such an operation, urging civilians to evacuate to designated humanitarian areas such as Al-Mawasi.
