Comments on the gold price reaction to the Federal Open Market Committee rate cut today via ANZ:
- Despite the Fed cutting rates by 25bps, Fed policy marers appeared split over the need for additional interest rate cuts. This has been one of the main reasons behind gold's strong performance over the past few months. This uncertainty over the outlook for rates at the Fed is likely to see the market divided over the outlook for the precious metals.
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The price drop was sharp indeed:
