Bellevue leads gold stock sell-off after Fed's 2025 outlook
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The news: Gold miners lost ground on the ASX in morning trade after gold prices hit their lowest level since 18 November, driven by the US Federal Reserve signalling a slower pace of interest rate cuts next year.
The numbers: Gold stocks Bellevue Gold (-4.7%), Perseus Mining (-2.6%), Genesis Minerals (-2.4%), and Emerald Resources (-2.3%) made up four of the worst 10 performing ASX 200 companies by midday AEDT.
The materials sector fell 0.9% as the ASX 200 index dropped 1.1%.
Spot gold traded roughly flat at USD2,592.44 ($4,162.92), according to Bloomberg data. However, it slipped 2% to a one-month low earlier in the session, Reuters said.
The context: The Fed's comments were firmed by new data overnight that showed the US economy grew faster than expected in the third quarter, while jobless claims also fell more than anticipated.
Gold is considered tends to thrive in a low-interest-rate environment.
Meanwhile, traders await Friday's release of core personal consumption expenditures (PCE) data, the Fed's preferred inflation measure, for further clues on the economic outlook.
