Reuters
Gold prices inch lower as markets weigh Fed rate trajectory
Gold prices edged lower on Tuesday as the dollar stood firm near recent highs, although trading was subdued with traders looking for more cues on the U.S. Federal Reserve’s policy path after a widely expected interest rate pause this month. “Much remains to be seen if rate cuts in 2024 follow and to what extent,” said Harshal Barot, a senior consultant at Metals Focus, adding that the possibility of U.S. rates remaining higher for longer would keep gold price rallies in check. If the U.S. economy indeed sees a soft landing, there is potential for more downside in gold as some of the aggressive rate cut expectations in 2024 second half would be pared back, Barot added.