The Fed's reduced rate cut forecast boosted the dollar, dropping gold by $60 below $2600.

On Wednesday, the Federal Reserve unexpectedly halved its expectation of a rate cut next year, causing the US dollar index to violently rise 120 points and ultimately close up 1.228% at 108.26, setting a new high since November 2022. The yield of US Treasury bonds collectively rose, with the two-year bond yield closing at 4.363% and the 10-year bond yield closing at 4.519%, both rising by more than 10 basis points during the day.

Gold prices fell by more than 2% on Wednesday, hitting 2583.65 at the lowest level since November 18, closing at $2585.48 per ounce. The Federal Reserve had lowered interest rates as expected, but pointed out that it would slow down the pace of further decline in borrowing costs, thus boosting the yield of US dollars and treasury bond bonds.

Although the decline in US crude oil inventories demonstrates demand resilience, the Federal Reserve's suggestion to slow down the pace of interest rate cuts has dampened optimism, leading to a third consecutive trading day of decline in both oil prices. WTI crude oil ultimately closed down 0.62% at $69.36 per barrel; Brent crude oil closed down 0.63% at $72.59 per barrel.