Gold Price Continues to Decline amid Caution Over the Pace of Interest Rate Cuts

SadaNews Economy - The price of gold continued to decline, as traders remain cautious about future interest rate cuts by the U.S. Federal Reserve and the rise of the dollar has stifled the recent increase in the precious metal.

Gold was trading near $3,647 an ounce, about $60 lower than its historical peak reached on Wednesday, which represented an unprecedented level resulting from the Federal Reserve's decision to cut interest rates by 25 basis points. The price then fell after comments from Federal Reserve Chair Jerome Powell about the monetary policy path, which was less dovish than expected, and his indication that officials are dealing "with each meeting individually" regarding further easing. Typically, gold benefits from lower interest rates as it does not yield any returns.

Powell's stance provided a boost to the U.S. dollar, which negatively impacted gold, making its purchase in other currencies more expensive.