Gold takes a modest step back

Earlier this morning Gold reached a new record high, at $2,589.70. It was already edging lower even as the USD/JPY fell back to set a new 2024 low at 139.58. The rebound off that low to above 140 since has helped to push gold back to a session low a short while ago, at 2,575.45. The thing is, even as the Yen jumped again it was not accompanied by further gains for gold and unsurprisingly as the dollar has bounced, gold has fallen. It seems the metal has run into profit-taking and at the current record levels that is surely to be expected. So, what if the Fed only cuts by 0.25% on Wednesday? Well, it is likely the metal might face a more determined push lower. Of course a 0.50% cut could just as easily see the opposite unfold. Therefore, gold owners are probably wise to act cautiously up here ahead of what could be a very volatile evening for the metal on Wednesday. Gold is currently trading at $2,581.20