Spot gold was 0.2% lower at $4,221.49 per ounce at 0300 GMT after touching its strongest level since December 5 earlier in the session. US gold futures for February delivery rose 0.6% to $4,249.70 an ounce.
In the domestic market, gold prices were steady, with 24-karat gold at ₹13,020 per gram, 22-karat at ₹11,935, and 18-karat at ₹9,765.
Fed’s split vote keeps traders cautious
The Federal Reserve delivered a 25-basis-point cut in a narrow 7–6 vote.
While most policymakers expect another reduction in 2025, the unusually split decision and Chair Jerome Powell’s reluctance to signal a clear path forward left markets uncertain about the pace of easing.
“Gold has been unable to build on early gains because the Fed’s message was essentially that any further rate cuts could be few and far between,” said Tim Waterer, Chief Market Analyst at KCM Trade.
Ravi Singh, Chief Research Officer at Master Capital Services, said bullion continues to benefit from the softer dollar environment created by the rate cut.
“Gold and silver reacted well. These metals usually shine when rates fall because the dollar weakens and real returns on cash drop,” he said, adding that the broader mood in emerging markets has also improved.
Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA), said the marginal dip in domestic prices appears to be a pause rather than a shift in trend.
“The pullback still looks more like a pause after the recent resilience. Rate-cut expectations and a softer dollar are still providing a steady base of support,” she noted.
Manav Modi, Commodities Analyst – Precious Metals at Motilal Oswal Financial Services, said the market is still digesting the Fed’s mixed signals.
“Gold continues to trade steady as market participants digest yet another cautious cut by the US central bank,” he said, pointing to the upcoming US inflation and jobs data as near-term drivers.
Rahul Kalantri, VP Commodities at Mehta Equities, added that easing bond yields and a weaker dollar have helped cushion gold.
“A steep fall in the dollar index and cooling US 10-year Treasury yields also strengthened the metal complex,” he said.
According to him, gold has support at $4,175–4,145 an ounce and resistance at $4,255–4,275 an ounce.
Broader risk sentiment has also turned constructive.
“We’re not surprised to see near-term optimism… however, the path to lower interest rates may take longer—or may not materialize at all—to the extent that investors believe,” said Vikram Kasat, Head Advisory, PL Capital.
-With Reuters inputs
