Gold futures lost ground Thursday, extending the previous day’s retreat after a Federal Reserve interest rate cut failed to stem a rise by the U.S. dollar.
Gold for December delivery on Comex fell $22.10, or 1.5%, to $1,415.70 an ounce, while September silver declined 41 cents, or 2.5%, to $15.995 an ounce.
Gold was pressured in electronic trade Thursday afternoon after the Fed delivered a widely expected quarter-point rate cut, and extended losses after Fed Chairman Jerome Powell described the reduction as a “mid-cycle adjustment” and not necessarily the start of a “lengthy” rate-cutting process. While Powell later emphasized that he didn’t mean Wednesday’s cut was a one-time event, the U.S. dollar rallied, putting pressure on commodities.
Source : Market Watch