Precious metal dropped more than $50 on Thursday and remained under pressure early Friday. Dollar rebounded.
Key Points:
- Gold slides over $50 from record high.
- Dollar sweeps across forex dealmaking.
- Fed vows to maintain rate cut outlook.
- Gold prices XAUUSD fell off a cliff Thursday after the US dollar abruptly woke up and chose violence following a post-Fed decline. The greenback roared across the board, ravaging forex dealmaking and pressuring the good old precious metal by erasing more than $50 of its price tag.
- The yellow commodity went from its fresh record high of $2,222 to $2,166 per troy ounce in the span of Thursday’s regular trading. Early on Friday, gold bugs were still nursing the heavy losses with the metal’s price floating at unchanged levels. With no major news on deck, markets were looking quiet.
- Quick catch-up: the Federal Reserve on Wednesday left interest rates unchanged. But, more importantly, Fed boss Jay Powell reaffirmed the central bank’s outlook to cut borrowing costs three times in 2024. The news sent the dollar reeling before buck bulls got back into the driver’s seat.