Gold Prices Trim Gains on Wednesday (Oct 29) as Fed Chair Powell Signals Caution Despite Expected Rate Cut
Gold prices pared back earlier gains on Wednesday (Oct 29) as markets digested remarks from U.S. Federal Reserve (Fed) Chair Jerome Powell about the future policy outlook, despite the central bank cutting interest rates by 0.25% as widely expected.
At the close of trading on Oct 29, spot gold rose 0.3% to $3,964.39/oz, after climbing as much as 2% earlier in the session. Gold futures added 0.4% to $4,000.7/oz.
The Fed lowered interest rates to a target range of 3.75%–4%, marking the second rate cut this year by the U.S. central bank.
During the press conference, Powell struck a cautious tone about the future path of policy. “In the Committee’s discussions at this meeting, there were quite different views about what to do in December 2025,” Powell said, adding that “further rate cuts at the December 2025 meeting are by no means a given. Not at all — policy is not on a preset course.”
The U.S. dollar index continued to strengthen, making dollar-priced gold more expensive for foreign buyers.
Non-yielding gold typically performs well in low-interest-rate environments and during periods of economic uncertainty.
On the trade front, U.S. President Donald Trump announced a trade deal with South Korea and expressed optimism about reaching a similar agreement with Chinese President Xi Jinping ahead of scheduled talks on Oct 30.
Gold prices have surged 51% year-to-date, hitting a record high of $4,381.21/oz on Oct 20, but have fallen more than 3% so far this week, partly due to easing trade tensions.
Domestic Gold Prices Rebound Sharply
Gold prices in Vietnam on Oct 30 saw a sharp rebound, with both SJC gold bars and plain rings surging strongly compared to the previous session’s close.
At Doji Group, SJC gold in both Hanoi and Ho Chi Minh City traded around VND 146.1 – 148.1 million/tael (buy – sell), up VND 3 million/tael on both sides from the previous session. The buy–sell spread stood at VND 2 million/tael.
At Bao Tin Minh Chau, SJC gold was quoted at VND 147.1 – 148.1 million/tael (buy – sell), rising VND 3.6 million/tael on the buying side and VND 3 million/tael on the selling side from the previous close. The buy–sell spread was VND 1 million/tael.
At Phu Quy Group, SJC gold traded around VND 145.6 – 148.1 million/tael (buy – sell), up VND 3 million/tael for both buying and selling compared to the prior session. The buy–sell spread stood at VND 2.5 million/tael.
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