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2025-09-18 13:56:31
Gold prices continued to fall as the Fed's hawkish stance boosted the dollar. 1. Gold prices fell further in Asian trading on Thursday, primarily due to a stronger dollar. The Fed previously cut interest rates by 25 basis points as expected, but expressed caution in its policy outlook, not making a clear commitment to further easing. 2. As of 1:54 PM Beijing time, spot gold fell 0.27% to $3,649.36 per ounce, breaking below the $3,650 mark. Gold prices hit a record high of $3,707 per ounce during intraday trading on Wednesday. 3. Marex analyst Edward Meir noted, "The Fed's overall stance is slightly hawkish, and it hasn't shown a strong willingness to continue cutting rates." He said the dollar strengthened after the decision, along with rising Treasury yields. In the short term, gold prices may be overbought and could fall further to the $3,600 level. 4. The US dollar index rose 0.4% on Wednesday and continued its gains in Asian trading on Thursday, currently up 0.24% to around 97.24. Federal Reserve Chairman Powell defined the rate cut as a risk management measure to address the weakening job market and emphasized that future policy will be determined "meeting by meeting." Meanwhile, holdings of the SPDR Gold Trust, the world's largest gold ETF, fell 0.44%, reflecting a cooling of market sentiment. Gold prices have risen 39% so far this year, continuing last year's strong 27% increase. Supporting factors include market expectations for Fed rate cuts, ongoing geopolitical risks, and central bank gold purchasing demand.
