Gold fell back to around $2,550 in early trading Thursday after the Federal Reserve (Fed) cut interest rates by 50 basis points to 4.75% to 5%.
At exactly 9.20 am, the price of gold was at $2,553.55 which is a decrease of 0.21% since it opened at the beginning of Asian trading.
Members of the FOMC meeting decided to lower borrowing costs as they grew more confident that inflation was moving sustainably towards the bank's 2% goal.
However, they acknowledged that the price stability and employment figures were roughly balanced while noting that the economic outlook was uncertain.
Meanwhile, Fed Chairman Jerome Powell's press conference said that the risk to inflation has decreased and confirmed that the economy is strong.
He also said that if inflation rebounds then the Fed will have to return to a tighter monetary policy and its officials will not be in a hurry to implement it.
Meanwhile, US Treasury yields rose two and a half basis points to 3.67% and the US Dollar Index (DXY) plunged against major world currencies by 0.54% to 100.49 points.
However, Fed officials forecast that the economy will grow at a rate of 2% in 2024 and the unemployment rate will rise to 4.4% by the end of the year.
