Gold Rockets to Fresh Record Highs After Fed’s Final 2025 Rate Cut
Yahoo Finance·2025-12-12 18:55

Core Insights - Gold prices have reached new all-time highs, surpassing $4,300/oz following the final FOMC meeting and interest rate cut of 2025 [3][8] - The FOMC announced a 25 basis point cut, totaling a reduction of -0.75% in 2025, but the tone was more hawkish with dissenting votes and projections indicating only one cut in 2026 [5][7][8] - Market reactions included a volatile rally in gold prices, despite the Fed's cautious messaging, with potential implications for future trading based on upcoming economic data [4][8] Economic Data and Market Reactions - The week saw limited economic data, with focus on the FOMC decision, which initially led to profit-taking pressures in gold and equities [4] - The Fed's decision to resume Treasury paper purchases aimed to loosen financial conditions, but was accompanied by a more cautious outlook on future rate cuts [5][7] - Upcoming Non-Farm Payrolls and CPI data are expected to influence market expectations for 2026 monetary policy and gold price movements [8]