Gold edged lower on Friday after hitting a more than seven-week high in the previous session, as investors booked profits, while silver surged to yet another all-time peak on Thursday.
Spot gold dipped 0.2% to $4,277.64 per ounce, as of 0029 GMT.
U.S. gold futures for February delivery was down 0.1% at $4,307.80 per ounce.
The U.S. dollar plummeted to an eight-week low in the previous session, making greenback-priced gold more affordable for overseas buyers.
The Fed delivered its third-consecutive 25-basis-point rate cut for the year in a deeply divided vote on Wednesday, but signalled that further cuts were unlikely as it waits for clearer signs on a softening job market and inflation that “remains somewhat elevated”.
The number of Americans filing new applications for unemployment benefits increased by the most in nearly 4-1/2 years last week, but the surge likely does not suggest a material weakening in labor market conditions.
A majority of U.S. central bankers expect they will need to cut short-term interest rates next year, but in an unprecedented move for the Fed, six policymakers indicated they didn’t support even Wednesday’s quarter-point cut.
Fed Chair Jerome Powell also declined to offer any guidance on whether another cut is likely in the near term.
Non-yielding assets such as gold tend to perform well in low-interest-rate environments.
Investors now await the monthly U.S. non-farm payrolls report, set to be released on December 16, for fresh cues on the Fed’s policy path.
India’s pension regulator on Wednesday issued revised investment rules for the country’s pension funds, permitting investments in gold and silver exchange-traded funds.
Meanwhile, spot silver fell 0.5% to $63.31/oz after scaling a record peak of $64.31 on Thursday. Year-to-date, prices have surged 119%, supported by rising industrial demand, falling inventories, and the metal’s entry into the U.S. critical minerals list.
Elsewhere, platinum lost 0.2% to $1,691.45, while palladium fell 0.5% to $1,476.5.
