Gold falls as dollar gains some ground; Fed symposium in focus

Gold falls as dollar gains some ground; Fed symposium in focus

Gold prices fell on Wednesday as the dollar ticked higher, with investors awaiting Federal Reserve Chair Jerome Powell‘s speech this week for possible guidance on tapering of the pandemic-era stimulus.

Spot gold fell 0.4% to $1,796.03 per ounce by 106 GMT, while US gold futures 0.6% to $1,797.50.

The dollar index inched 0.1% higher, denting gold’s appeal for those holding other currencies.

Goldman Sachs economists have raised the odds that the Fed will announce the start of tapering its bond purchases in November, predicting the central bank will likely opt to dial back purchases by $15 billion then and at meetings that follow.

Focus will now be on Powell’s speech at the Fed’s annual economic symposium at Jackson Hole, Wyoming, on Aug. 27 and whether he gives a timeline on the stimulus withdrawal.

The United States could get Covid-19 under control by early next year if vaccinations ramp up, Dr. Anthony Fauci said on Tuesday, with the country now averaging 1,000 Covid deaths a day and over 150,000 new cases.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 1,004.63 tonnes on Tuesday from 1,006.66 tonnes on Monday.

Silver eased 0.4% to $23.73 per ounce, while

fell 0.5% to $1,005.97.

Palladium was down 0.6% to $2,459.89.

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