The price of the global gold ounce has declined today following the U.S. Federal Reserve's decision to lower interest rates in line with market expectations, but the bank president's statements indicated that further interest rate cuts are uncertain, which led to gold losing the gains it recorded during today's session.

Global gold ounce price

According to an analysis by Gold Bullion, the global gold ounce price fell following the Federal Reserve meeting to currently trade at $3942 per ounce after trading at $4000 per ounce before the bank's decision was announced, while it recorded a high of $4030 per ounce today and a low of $3907.

The global gold ounce price returned to decline today following the American Federal Reserve's decision to cut interest rates in line with market expectations, but the Chairman's statements indicated that further interest rate cuts are not certain, which led to losses in the gains that gold recorded during today’s session.

Global gold ounce price

According to an analysis by Gold Bullion, the global gold ounce price fell following the Federal Reserve meeting to currently trade at $3942 per ounce after trading at $4000 per ounce before the bank's decision was announced, while it recorded a high of $4030 per ounce today and a low of $3907 per ounce.

The American Federal Reserve decided to cut interest rates by a quarter percentage point to bring the rate to 4%, a decision that was widely expected in the markets, and thus the impact of the decision was negative on gold as soon as it was announced.

The statements of Federal Reserve Chairman Jerome Powell have led gold to further decline and lose the gains it recorded today, as he indicated that the bank members discussed extensively about the future of inflation, with many members fearing that the currently high inflation may persist for a longer period, which is negative for gold prices.

Chairman Powell clearly indicated that the bank has not yet made a decision regarding interest rate cuts during its next meeting in December, and that the ongoing government shutdown affects economic conditions and makes the Federal Reserve more cautious in making its decisions.

The impact of these statements was negative on gold prices as it reduces expectations for interest rate cuts during the next bank meeting in December, especially with the bank indicating the possibility of sustained inflation increases, which requires the bank to stop cutting interest rates.

It is noted that the decision to cut interest rates is generally positive for gold, as cutting rates reduces the yields on government bonds and pushes the dollar to decline, thereby lowering the opportunity cost of gold which does not provide a return for its holders.

We may witness the global gold ounce price closing today below the psychological level of $4000 per ounce for the third consecutive day, which may increase the continued negative pressure on gold prices in light of the negative correction affecting it since last week and its recording of a historical level of $4381 per ounce.

Local gold price

As for the local gold price, it has decreased during today’s session by 40 pounds so far, with the most common 21-carat gold trading at 5340 pounds per gram after opening today’s trading at 5380 pounds per gram.

It is noted that local gold movement primarily depends on the movements of the global gold ounce price during this period, and thus the decline in local gold price continues due to the negative correction of the global price, in addition to the negative pressure from the decline in the dollar exchange rate against the pound in banks, which negatively affects gold pricing.