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Gold Slips Toward Weekly Losses as Fed Rate-Cut Hopes Fade
Gold is on track to post notable weekly losses as market optimism over a potential Federal Reserve interest rate cut continues to wane.
Prices of the precious metal fell during Friday’s session, pressured by a hawkish tone from recent Fed statements and U.S. economic data suggesting that inflation remains sticky.
Despite ongoing geopolitical risks—including Middle East tensions and the prolonged Ukraine conflict—investors appear more focused on the macroeconomic signals coming from Washington.
A strong U.S. dollar and rising Treasury yields have made gold less attractive, particularly as holding the metal offers no yield compared to government bonds.
The latest Fed minutes showed that policymakers remain cautious and are in no rush to lower rates, citing lingering uncertainty about inflation's path. Markets now anticipate only two rate cuts by the end of 2025, weighing heavily on the demand for gold as a traditional safe-haven asset.
In response, spot gold prices fell below the $2,320 per ounce mark, as traders moved to lock in profits and reassess their positions amid uncertainty over the U.S. economic outlook and central bank policy.
