Gold takes a breather as markets weigh Fed's policy stance

Gold prices fell on Thursday due to profit-taking, after scaling a record peak in the previous session, as markets assessed the Federal Reserve's stance on further interest rate cuts, reports Reuters.

Spot gold was down 0.6 per cent at $3,638.33 per ounce as of 9:41 am EDT (1341 GMT). US gold futures for December delivery fell 1.3 per cent to $3,670.40.

The previous session saw volatile trading, with spot prices briefly touching a record high of $3,707.40 before pulling back from those levels.

On Wednesday, the Fed delivered its first rate cut since December and opened the door to further easing, but tempered its message with warnings of sticky inflation, sowing doubt over the pace of future policy adjustments.

Fed Chair Jerome Powell described the policy move as a risk-management cut in response to a weakening labor market, but emphasized that the central bank is not in a hurry to begin easing.