Gold hits record high, then drops on Fed's rate cut
Gold prices reached an all-time high of $3,707.40 per ounce on Wednesday after the US Federal Reserve announced its first rate cut of the year.
But the excitement was short-lived—gold quickly slipped by 0.9% to $3,658.25 when Fed Chair Jerome Powell said the Fed is in a "meeting-by-meeting situation" regarding the outlook for interest rates.
December gold futures also settled lower after his comments.
Gold has soared 39% this year
Gold has soared 39% this year thanks to central banks buying up gold and a weaker dollar, making it a go-to safe haven during global tensions.
Trader Tai Wong pointed out that some investors took profits after Powell's cautious tone on rate cuts.
Deutsche Bank now expects gold to average $4,000 per ounce next year.
Other precious metals like silver, platinum, and palladium also fell after the Fed's announcement, showing how closely these markets follow big economic news.