Gold Trading Higher as the Dollar and Treasury Yields Sag Following the Fed's Interest-Rate Cut

09:09 AM EST, 12/11/2025 (MT Newswires) -- Gold traded higher early on Thursday as the dollar and treasury yields weakened after the Federal Reserve, as expected, cut U.S. interest rates by 25 basis points a day earlier.

Gold for February delivery was last seen up US$19.30 to US$4,244.00 per ounce.

The Federal Open Market Committee (FOMC) ended its two-day meeting on Wednesday by lowering interest rates by 0.25 percentage points to a range of 3.50% to 3.75%, the lowest in three years. However the outlook for future cuts remains uncertain, with members expecting only one further cut in 2026.

However a slowing labor market may force further cuts, with U.S. initial jobless claims rising last week to 236,000, up from 191,000 claims a week earlier and above the consensus estimate for 223,000 claims, according to Marketwatch.

"Precious metals received a lift from the expected FOMC rate cut, which helped soften the dollar and Treasury yields ... Gold meanwhile remains confined to a roughly USD 90 band around USD 4,200, a range that has held for two weeks as investors take stock after an exceptional year of gains," Saxo Bank noted.

The dollar weakened early, with the ICE dollar index last seen down 0.46 points to 98.32. Treasury yields also fell, with the yield on the U.S. two-year note down 3.1 basis points to 3.522%, while the 10-year note was paying 4.119%, down 3.6 points.

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