Gold prices retreated in midday trading Wednesday after posting a second all-time high in as many days earlier in the session.
Driven largely by profit-taking, the yellow metal held steady at $2,456 per ounce, down $12.49. Earlier Wednesday, gold spiked to a new all-time high at $2,483 per ounce. A day earlier, gold crossed the previous record of $2,450 per ounce set on May 20 and finished the trading session up nearly 2% at $2,468 an ounce.
The price slip didn't appear to shake investors, who remained confident that policymakers would move to trim interest rates based on a steady clip of dovish comments this week by several Fed officials. Not only has the market figured a 98% likelihood of a rate cut in September, emboldened traders have also penciled in two additional reductions for November and December, according to the CME FedWatch tool.
Two Federal Reserve officials signaled Wednesday that a reduction from the current benchmark 5.25%-5.5% rate was around the corner so long as economic conditions hold.
In an interview with The Wall Street Journal published Wednesday, New York Federal Reserve President John Williams said the Fed is "getting closer" to pulling the trigger on rate cuts thanks to a string of encouraging economic data.
"I feel like the past three months—and I would include in June, based on what we've seen—seems to be getting us closer to a disinflationary trend that we're looking for," Williams told the newspaper. "I would like to see more data to gain further confidence inflation is moving sustainably towards our 2% goal. We've got a few good months now."
Additionally, Federal Reserve Governor Christopher Waller noted Wednesday that current data suggests the economy is growing at a more moderate pace, labor supply and demand are coming back into balance, and inflation has cooled from earlier this year.
"While I don't believe we have reached our final destination, I do believe we are getting closer to the time when a cut in the policy rate is warranted," Waller said in a speech at the Federal Reserve Bank of Kansas City.
Gold Price Chart
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