Gold flat after bumper Fed rate cut
Sept 19 (Reuters) -Gold struggled for momentum on Thursday as market participants digested Federal Reserve Chair Jerome Powell's comments after the U.S. central bank delivered a super-sized rate cut.
FUNDAMENTALS
* Spot gold XAU= was little changed at $2,558.00 per ounce, as of 0033 GMT. Bullion rose to a record high of $2,599.92 on Wednesday before closing lower.
* U.S. gold futures GCcv1 fell 0.6% to $2,582.70.
* The U.S. dollar rose broadly, recovering from an earlier tumble caused by the Fed's rate-cut decision. A stronger dollar makes gold more expensive for other currency holders. USD/
* The Fed initiated a gradual easing of monetary policy with a half-percentage-point rate cut on Wednesday, anticipating an additional half-point reduction by the end of the year.
* Following the rate-cut decision, Powell said he does not see any indication of a recession or even an economic downturn ahead.
* He said the central bank is in no rush to cut rates and that it will move as fast or as slow as it thinks appropriate.
* Traders are currently anticipating a 68% chance of a 25 basis-point reduction in November and a 32% chance of a 50-bp cut, according to the CME FedWatch tool. FEDWATCH
* Zero-yield bullion tends to be a preferred investment in a lower interest rate environment and during geopolitical turmoil.
* Market focus is also on the initial U.S. jobless claims data, which is due at 1230 GMT.
* On the geopolitical front, hand-held radios used by Hezbollah exploded across southern Lebanon on Wednesday, making it the deadliest day since fighting with Israel began nearly a year ago.
* Spot silver XAG= rose 0.5% to $30.20 per ounce, platinum XPT= edged up 0.1% to $969.45 and palladium XPD= shed nearly 1% to $1,051.43.
DATA/EVENTS (GMT)
1100 UK BOE Bank Rate Sept
1230 US Initial Jobless Clm 14 Sept, w/e
1230 US Philly Fed Business Indx Sept
1400 US Existing Home Sales Aug
Reporting by Daksh Grover in Bengaluru; Editing by Subhranshu Sahu
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