Gold falls as Fed’s Kaplan says rate cuts should be restrained

Federal Bank of Dallas president Robert Kaplan introduced some caution to investor enthusiasm that has sent gold holdings in exchange-traded funds to their longest steak of gains in a decade.

Kaplan said that the reduction in borrowing costs by the Fed shouldn’t be a “full-fledged cutting cycle", tamping down expectations of a prolonged monetary easing that helped drive non-interest bearing gold to a six-year high last month.