Gold prices edged higher on Friday, poised for a fifth consecutive weekly gain, following the U.S. Federal Reserve’s first rate cut of the year, while investors awaited further signals on the U.S. policy outlook.
Spot gold was up 0.2% at $3,650.89 U.S. per ounce.. Bullion is up 0.2% so far this week. U.S. gold futures for December delivery rose 0.1% to $3,683.40.
The Fed cut its key interest rate by 25 basis points on Wednesday and opened the door to further easing, but tempered its message with warnings of sticky inflation, sowing doubt over the pace of future easing.
Fed Chair Jerome Powell characterised the policy action as a risk-management cut in response to the weakening labour market and said the central bank was in a “meeting-by-meeting situation” regarding the rate outlook.
Traders are pricing in a 92% chance of another 25-bp cut at the Fed’s October meeting.
