Gold pulls back below new all-time-high of $2,600

 Gold shot higher after the Federal Reserve cut interest rates by a double-dose of 50 bps. 

• The precious metal failed to hang onto gains and topples before recovering again on Thursday. 
• Gold’s limited upside could be due to the Fed’s general assessment of the US economy as doing fine. 

Gold (XAU/USD) trades back in the $2,570s on Thursday after falling to the $2,540s following the US Federal Reserve (Fed) decision on interest rates the prior day.

The yellow metal popped to a new record high of $2,600 on Wednesday before quickly falling back following the much-anticipated Fed meeting, at which they decided to implement a 50 basis point (0.50%) cut to the fed funds rate. This lowers the Fed’s base rate to a range of 4.75%-5.25% from 5.25%-5.50% previously. 

Gold peaks after Fed meets 

Gold hit a record high of $2,600 after the Fed went ahead with a 50 bps rate cut on Wednesday, although the yellow metal failed to sustain its new highs. Several analysts explained the lack of volatility (financial asset prices changed only modestly after the announcement) due to the Fed’s easing cycle having already been priced in by financial markets