Gold Glitters After Fed’s Rate Cut: What Traders Need to Know
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The Federal Reserve’s decision last night to cut rates by 25 basis points sent shockwaves through global markets—and gold was the immediate beneficiary. Spot prices surged to $4,257/oz, reversing earlier weakness as traders piled into safe-haven assets. Silver followed suit, smashing through the $60 mark to set a new record.
The Fed’s Move
The FOMC voted 9–3 to ease, lowering the federal funds rate to 3.5–3.75%. Chair Jerome Powell struck a cautious tone, signalling that while the Fed is prepared to act, aggressive easing in 2026 is unlikely. Markets are now recalibrating expectations, with traders parsing every word for clues about the path ahead.
Market Reaction
• Gold: Jumped $35 in the hour following the announcement, hitting an intraday high of $4,268.
• Silver: Extended its rally, underscoring the strength of precious metals in uncertain policy environments.
• Yields: Lower Treasury yields amplified gold’s appeal as a non-yielding hedge.
Why It Matters
For traders, the message is clear: gold remains the ultimate hedge when policy gets cloudy. With Powell’s cautious stance leaving room for volatility, bullion offers both protection and opportunity. Silver’s breakout adds another layer of momentum, suggesting that the metals complex could remain a focal point for months to come.
The Trader’s Take
This isn’t just about price action—it’s about positioning. In times of policy uncertainty, gold and silver aren’t just safe havens; they’re leverage points for strategy. Whether you’re hedging against volatility or riding the momentum, the Fed’s move has reignited the metals trade.
Bottom line: The Fed’s cut has re-lit the fire under gold. Traders who understand the interplay between policy, yields, and sentiment will find opportunities in the volatility ahead.
Make it stand out
Whatever it is, the way you tell your story online can make all the difference.
