US Fed Rate Cut Live: Fed likely to cut rates again even as policymakers remain divided

Gold prices edged down on Wednesday as investors awaited an expected interest rate cut by the U.S. Federal Reserve and clues on its future policy, while silver extended its rally to new highs.

Spot gold was down 0.3% to $4,197.91 per ounce at 1243 GMT. U.S. gold futures for February delivery inched 0.2% lower to $4,226.40 per ounce.

Meanwhile, spot silver rose 0.6% to $61/oz after hitting an all-time high of $61.61 earlier in the session, driven by rising industrial demand, declining inventories, and its designation as a critical mineral by the United States. The white metal has risen 112% so far this year.

The U.S. central bank is experiencing a deep internal division primarily fueled by lingering inflation concerns. This division is expected to prevent Fed Chair Jerome Powell from providing clear signals about future interest rate moves early next year.

With markets nervous and US equities slipping earlier this week, the tone of Jerome Powell’s press conference may matter more than the cut itself. Read More

The Federal Reserve's rate-setting committee comprises 12 voting members who determine the course of interest rates by a majority vote.

A 25 basis point rate cut by the American central bank is mostly expected by analysts. Traders are pricing in an approximately 87 percent chance of a 25-basis-point rate cut today, according to CME's FedWatch Tool. Read More

Financial markets expect a third straight 25 basis points reduction, bringing levels to a range between 3.50 percent and 3.75 percent. This would be the lowest in around three years.