Update: Gold Moves Lower on Profit Taking After the Fed Cuts Interest Rates

02:00 PM EDT, 09/18/2025 (MT Newswires) -- (Updates prices)

Gold futures fell for a second day midafternoon on Thursday as traders again take profits following Tuesday's record high even as the Federal Reserve cut interest rates for the first time this year and indicated more cuts are coming.

Gold for December delivery was last seen down US$39.70 to US$3,678.10 per ounce, continuing a retreat from Tuesday's record high of US$3,725.10.

The drop comes after the Fed cut U.S. interest rates by 25 basis point on Wednesday while indicating a further 50 points of cuts could come by year end. Lower interest rates cut into the carrying cost of owning gold and the central bank's dovish turn may continue to support the metal.

"The gold market had a mild "sell the fact" reaction to the widely expected rate cut from the Fed, given that it and two more cuts this year were already baked in. While another pocket may emerge if there's a pause next month, our main takeaway is that gold prices are likely going to hold up, and even rise," Christopher Louney, a commodities strategist at RBC Capital Markets, wrote.

The dollar rose early, with the ICE dollar index last seen up 0.44 points to 97.31. Treasury yields were mixed, with the yield on the U.S. two-year note last seen down 0.4 basis points to 3.576%, while the 10-year note was paying 4.105%, up 2.0 points.

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