Gold rose for a second day after the Federal Reserve gave the clearest signal yet that its aggressive monetary-tightening campaign has ended, by forecasting a series of rate cuts next year.

Bullion traded near $2,030 an ounce after surging 2.4% on Wednesday as Fed policymakers said they expect to lower rates by 75 basis points in 2024. Bond yields and the dollar plunged, while traders boosted bets on a reduction in borrowing costs in March to a near certainty.

Gold has been under pressure recently following a rally which saw it hit a record earlier this month. Those gains were unwound on signs the market may have been too aggressive in betting on lower rates, which typically benefit non-interest bearing gold.

Bullion has been supported for most of the year by strong central bank buying, even as investor demand for gold-backed exchange-traded funds has fallen sharply since the end of May.

Gold rose 0.3% to $2,032.98 an ounce as of 8:02 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver edged higher in the wake of its 4.6% surge in the previous session, while platinum and palladium also gained.

Source : Bloomberg