Gold wavered as traders mulled the Federal Reserve’s outlook for interest rates.
Bullion gained as much as 0.5% in US trading before paring some gains, while Treasury yields and the dollar declined.
Traders had taken comfort in Fed policymakers leaving the door open to more easing next year, even though the quarter-point cut on Wednesday drew three dissents. They stuck to bets on two cuts in 2026, even as the Fed’s new projections signaled only one such move. The latest US unemployment benefits data didn’t alter their view.
Gold typically performs well in a lower rate environment as it pays no interest.
Prices for bullion in China have drifted below international benchmarks in recent weeks, signaling that the world’s second-largest economy is weighing on the latest leg of the rally.
Gold has surged more than 60% this year and silver has more than doubled, with both metals on track for their best annual performances since 1979. The scorching rallies have been underpinned by elevated central-bank buying and a retreat by investors from sovereign bonds and currencies. Holdings in gold-backed exchange-traded funds have risen every month this year except May, according to the World Gold Council.
Meanwhile silver hit a fresh record near $63 an ounce, after gaining 112% this year. The white metal has been bolstered in recent weeks by surging demand, as well as tightness and dislocations across major trading hubs.
Gold rose 0.2% to $4,236.12 an ounce as of 10:09 a.m. in New York. Silver climbed as much as 1.8% to a record $62.8863. Platinum and palladium gained. The Bloomberg Dollar Spot Index fell 0.3%.
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