Price Falls as Fed Speakers Suggest Rate Cuts May Not Come Soon

The spot price of gold was 0.4% lower at $2,376.96 per ounce as of 5 p.m. ET Thursday, putting the brakes on a rally earlier in the week driven by economic data suggesting the Federal Reserve could begin cutting interest rates.

The shift came as comments by several Federal Reserve speakers raised doubts about when the central bank might move to cut interest rates.

Fed’s Williams Says He Doesn’t Expect Rate Cuts Soon

New York Fed President John Williams threw cold water on the idea of policymakers reducing rates anytime soon in an interview with Reuters Thursday, suggesting monetary policy is “is in a good place.”

Williams reportedly suggested he doesn’t see a reason to change the stance of monetary policy now, telling Reuters “I don’t expect that, I don’t expect to get that greater confidence that we need to see on the inflation progress towards a 2% goal in the very near term.”

Fed’s Barkin Says Fed Needs More Time To Slow Inflation

Richmond Fed President Thomas Barkin also suggested in an interview with CNBC that the central bank may need to keep interest rates elevated for longer to slow inflation down to the central bank’s 2% target, pointing to price pressures in the services sector.