Gold hit record high of $3,707.40/oz on Wednesday
Spot gold may fall into $3,596 to $3,617 range – technicals
Palladium on track for a weekly dip
(Recasts, adds graphic and updates for Asia market close)
Gold prices were flat on Friday as markets awaited more cues on the U.S. policy path after the Federal Reserve’s 25-basis-point rate cut and the outlook on further easing in the months ahead failed to meet investors’ dovish expectations.
Spot gold was little changed at $3,646.29 per ounce as of 0640 GMT. Bullion had hit a record high of $3,707.40 on Wednesday.
U.S. gold futures for December delivery were also flat at $3,679.40.
“Sentiment is still bullish but has definitely cooled off a bit. Basically, the Fed didn’t really deliver with the dovish guidance needed for gold to push higher,” Capital.com analyst Kyle Rodda said.
“The projection of two more cuts this year was a positive. However, the forecast of only the one cut in 2026 was above market pricing and has had the effect of pushing up yields and the dollar.”
The Fed resumed rate cuts on Wednesday and opened the door to further easing, but tempered its message with warnings of sticky inflation, sowing doubt over the pace of future easing.
Fed Chair Jerome Powell characterised the policy action as a risk-management cut in response to the weakening labour market and said the central bank was in a “meeting-by-meeting situation” regarding the rate outlook.
Traders are pricing in a 92% chance of another 25-bp cut at the Fed’s October meeting, according to the CME Group’s FedWatch tool.
Lower rates reduce the opportunity cost of holding non-yielding bullion.
Meanwhile, the Bank of England and the Bank of Japan held interest rates steady this week.
On the technical front, spot gold may break support at $3,630 per ounce and fall into a range of $3,596 to $3,617, according to Reuters technical analyst Wang Tao.
Elsewhere, spot silver rose 0.8% to $42.12 per ounce, platinum eased 0.3% to $1,379.50. Palladium was steady at $1,151.19 but was headed for a weekly fall, declining 3.5%.
(Reporting by Brijesh Patel in Bengaluru; Editing by Sumana Nandy and Rashmi Aich)
