Bullion rose more positively after the Fed decided to cut interest rates by 25 basis points early Thursday morning in line with market expectations. For now, investors will be preparing for Fed Chairman Jerome Powell’s press conference.
At 9.15 am, gold prices were at $3,949, up 0.48% since it opened in early trading Thursday in the Asian session.
During the FOMC meeting, most officials voted to cut the funds rate to 3.75%-4.00%, but Fed Governor Stephen Miran still wanted a 50 basis point easing and Kansas City Fed Jeffrey Schmid chose to keep rates unchanged.
In its latest statement, the Fed saw the economy growing at a moderate pace, job gains have slowed this year and the unemployment rate has risen.
In addition, inflation has increased since the beginning of the year and remains quite high.
Regarding balance sheet reduction, the Committee decided to finalize the reduction of its aggregate securities holdings on December 1.
