Gold regained the $2,700 level after the Federal Reserve (Fed) decided to lower interest rates while admitting that the impact of the US election will not have an impact in the near term.
At 9.40am, the price of gold was at $2,701.07 which is a modest 0.16% since it opened in early trading on Friday after jumping over 1.7% at the end of yesterday's session.
Meanwhile, the Wall Street stock market extended its gains after the Fed cut the funds rate by 25 basis points after meeting members agreed.
In an official statement, Fed officials acknowledged the strong economic expansion despite weak labor data and they acknowledged that inflation is moving toward the 2% target.
However, they will continue to be wary of current economic and monetary policy risks.
Fed Chairman Jerome Powell refrained from saying about the expected rate movement in the future especially for the December meeting. He emphasized that the Fed is able to take its time to lower rates due to a strong economy.
He also said the Fed could comfortably accelerate rate cuts if the labor market slows as it nears the expected neutral reach.
However, he insisted that there is still no conclusive word that is convincing enough.
