Gold prices fell in the European market on Wednesday for the first time in four days, retreating from their all-time highs, pressured by profit-taking activity and a rebound in the U.S. dollar against a basket of major currencies.
The Federal Reserve will conclude later today its sixth policy meeting of 2025 to discuss appropriate monetary policy for the world’s largest economy, with expectations pointing to a 25-basis-point interest rate cut.
Price Overview
• Gold prices today: gold declined by 0.75% to (3,662.69$), from an opening level of (3,690.06$), after recording an intraday high of (3,695.40$).
• At Tuesday’s settlement, gold prices rose by 0.3%, marking a third consecutive daily gain, and reached an all-time high of 3,703.30$ an ounce.
U.S. Dollar
The dollar index rose on Wednesday by 0.2%, holding above a ten-week low at 96.56 points, reflecting a rebound in the U.S. currency against a basket of peers, which in turn weighed negatively on gold and other dollar-denominated commodities.
Beyond low-level buying, this rebound comes as investors paused from building fresh short positions while awaiting the outcome of the Fed’s critical policy meeting.
Federal Reserve
The Federal Reserve will conclude later today its sixth scheduled meeting of 2025 to set appropriate monetary policy for the U.S. economy, with expectations of a 25-basis-point cut — the first U.S. interest rate reduction since December 2024.
The policy decision, along with the monetary policy statement and updated economic projections, is due at 19:00 GMT, followed by Fed Chair Jerome Powell’s press conference at 19:30 GMT.
The data and remarks are expected to provide stronger guidance on whether additional rate cuts will be delivered later this year, particularly amid ongoing pressure from President Donald Trump for deeper easing to cushion housing-sector risks.
U.S. Interest Rates
• According to CME Group’s FedWatch tool: market pricing for a 25-basis-point cut at this week’s meeting remains at 100%, while odds of a 50-basis-point cut stand at 4%.
• For October, the probability of a 25-basis-point cut is also fully priced at 100%, with 50-basis-point odds steady at 3%.
Outlook for Gold
Tim Waterer, chief market analyst at KCM Trade, said gold’s rally to the 3,700$ level was supported by dollar weakness alongside bets that the Fed may signal further easing before year-end.
He added that profit-taking near the 3,700$ mark pulled the metal back below that level, but if the Fed adopts a strongly dovish stance at this meeting, gold could attempt another push toward fresh record highs.
SPDR Gold Trust
Holdings at SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose by 3.14 metric tons on Tuesday, marking a second consecutive daily increase, bringing the total to 979.95 metric tons — the highest in about a week.
