Gold Retreats from Record Highs as Fed’s Powell Tempers Rate-Cut Expectations

Manama: Gold prices retreated on Wednesday from an all-time high hit in the previous session, as Federal Reserve Chair Jerome Powell's hawkish comment cemented views of slower rate cuts this year, while investors awaited a key U.S. inflation report. Spot gold fell 0.4% to USD 2,885.53 per ounce by 0504 GMT. Bullion climbed to a record high of USD 2,942.70 on Tuesday. U.S. gold futures eased 0.8% to USD 2,910.70. According to Bahrain News Agency, spot silver eased 0.2% to USD 31.83 per ounce, platinum lost 0.5% to USD 978.06, and palladium fell 0.2% to USD 973.54. The decline in gold prices followed Powell's remarks, which dampened hopes for a series of rate cuts in the near future, influencing market sentiment and causing investors to reassess their positions in precious metals. Investors are now turning their focus to an upcoming U.S. inflation report, which could provide further insights into the Federal Reserve's monetary policy trajectory. The market is closely watching for any indications that might p rompt the Fed to adjust its current stance on interest rates, which could significantly impact the prices of precious metals moving forward.