Gold declines after US Central Bank indicated one rate cut this year

Gold prices fell today, Thursday, after the Federal Reserve (US Central Bank) reduced in its latest monetary policy meeting its expectations for the number of interest rate cuts this year to only one time, which is less than previously expected, despite the slowdown in inflation in May.

Gold fell in instant transactions by 0.4% to $2,313.92 per ounce by 03:40 GMT. US gold futures also fell 1.1% to $2,329.50, according to Reuters.

“While a lower CPI reading would have supported gold, the Federal Reserve meeting concluded that the number of interest cuts will be reduced in 2024 and that the start of the reduction is still far away,” said Tim Waterer, chief market analyst at KCM Trade.