WASHINGTON (dpa-AFX) - Gold edged higher on Friday to hover near a seven-week high following the Fed's less hawkish than expected outlook on rates.
Spot gold jumped 0.8 percent to $4,315 an ounce while U.S. gold futures were up 0.8 percent at $4,346.65.
Earlier this week, the U.S. Federal Reserve signaled only one more cut in 2026 after reducing its key interest rate by a quarter-point for the third time in a row.
The biggest surprise was its decision to restart Treasury purchase that will increase the size of the Fed's balance sheet, which is typically around 20 percent the size of the economy.
Fed Chair Jerome Powell said at a post-policy press conference that he did not 'think a rate hike is anyone's base case,' prompting traders to price in at least two rate cuts for next year.
The U.S. dollar was on track for a third straight weekly loss, hovering near two-month lows due to increasing monetary policy divergence between the ECB and the Fed.
Kevin Hassett, who previously chaired the Council of Economic Advisers, is a leading contender to succeed Powell as U.S. Fed Chair and an announcement in this regard is likely before the end of the year.
The more dovish-leaning Hasset has repeatedly shown his inclination for significantly lower borrowing costs.
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