Gold fell for a second day, while sustaining its hold above $1,400 an ounce, after the Federal Reserve signaled it probably won’t embark on a lengthy easing cycle following the first rate cut since the financial crisis.
The drop came as investors in Asia reacted to the bank paring the target range for the benchmark rate by a quarter point, a move that was widely expected. Still, markets were whipsawed on remarks from Fed Chairman Jerome Powell, who struggled to define the path ahead. Two Fed rate-setters dissented.
Spot gold declined as much as 0.7% to $1,404.38 an ounce and was at $1,409.47 at 10:09 a.m. in Singapore. In July, the precious metal hit $1,453.09, the highest intraday price since May 2013, and is still about 10% up this year. Silver lost 0.6% to $16.1624 an ounce, while platinum and palladium both dropped.