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Gold drops to 2-week low after Fed rate outlook lifts US dollar
Gold prices slipped to a two-week low on Thursday after the U.S. Federal Reserve delivered a 25-basis-point rate cut as expected but ruled out a lengthy easing cycle, sending the dollar to a two-year peak. FUNDAMENTALS * Spot gold was down 0.4% at $1,407.91 per ounce as of 0102 GMT, after falling to its lowest since July 17 at $1,405.50. * U.S. gold futures dropped 1.3% to $1,419 an ounce. * Policymakers moved the U.S. central bank’s benchmark overnight lending rate to a target range of 2.00% to 2.25%, citing concerns about the global economy and muted U.S. inflation. * However, Fed Chair Jerome Powell, speaking in ... (full story)
