Gold Rises After Fed's 25-Bp Rate Cut

Gold prices climbed on Thursday following a 25-basis-point interest rate cut by the US Federal Reserve, though the central bank's divided vote and cautious outlook on future easing tempered gains. Spot gold rose 0.3 percent to $4,242.39 per ounce in early Asian trading, while US gold futures for February delivery advanced 1.1 percent to $4,271.30 per ounce. The move came after the Federal Open Market Committee lowered the federal funds rate to a target range of 4.25 percent to 4.50 percent during its December meeting in Washington.

The rate reduction marked the third consecutive cut this year, but policymakers signaled restraint ahead. In a split decision, six of the 19 participants dissented against the quarter-point reduction, an unusual occurrence that highlighted internal divisions over the pace of monetary easing. A majority still anticipates further cuts in 2025, yet the statement emphasized the need for clearer evidence of a softening labor market and cooling inflation before additional moves. Federal Reserve Chair Jerome Powell addressed the decision in a post-meeting press conference, stating that the bank's policy is "well positioned to respond to whatever lies ahead...