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Gold Prices Dip as Markets Absorb Dovish Fed Outlook; Silver Eases After Record High

Gold Prices Dip as Markets Absorb Dovish Fed Outlook; Silver Eases After Record High. Source: Photo by Michael Steinberg

Gold prices slipped in Asian trading on Thursday as investors evaluated the Federal Reserve’s latest policy signals, which combined a widely expected interest rate cut with a surprisingly dovish move to boost liquidity. The Fed trimmed rates by 25 basis points and announced plans to resume buying Treasury bills at a pace of $40 billion per month—an action many traders view as a form of quantitative easing. While policymakers emphasized a higher bar for future rate cuts, the liquidity support sent Treasury yields lower and stirred mixed sentiment across precious and industrial metals.

Spot gold fell 0.5% to $4,207.49 per ounce after a strong rally ahead of the Fed meeting, while March gold futures edged up 0.3% to $4,235.50. The pullback reflected moderate profit-taking as markets digested the central bank’s updated economic projections and commentary from Chair Jerome Powell, which, according to analysts, was less hawkish than some investors anticipated.

Silver prices also retreated slightly after setting a new record earlier in the day. Spot silver dipped to $61.8095 per ounce after touching $62.8895, extending a powerful multi-month rally driven by expectations of tightening supply, improving industrial demand, and renewed interest in safe-haven assets. The metal has more than doubled in 2025, outpacing gold thanks to its growing role as a critical mineral in the U.S. and its comparatively lower price point, which continues to attract investors.

Platinum edged 0.2% higher to $1,661.18 after overnight weakness, while copper futures on the London Metal Exchange rose 0.4% to $11,608.45 per ton, reflecting steady sentiment across industrial metals.

Overall, the metal markets remain sensitive to shifting monetary policy expectations, with traders watching closely for further clues on the Fed’s rate path and liquidity strategy in the months ahead.

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