Tuesday, September 21, 2021

    Gold slides 1% on dollar strength, Fed verdict in focus

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    Naija247news Editorial Teamhttps://www.naija247news.com/
    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    Gold retreated 1% on Wednesday, sliding further below the $1,800 level as the dollar ticked higher and investors hoped for a timeline for the tapering of economic support from the U.S. Federal Reserve at this week’s Jackson Hole symposium.

    Spot gold was down 0.9% at $1,786.01 per ounce by 10:43 a.m. ET, while U.S. gold futures fell 1.1% to $1,788.10.

    Bullion rallied 1.4% on Monday to the highest in nearly three weeks, driven by a broad retreat in the dollar this week.

    Prices have however, been on a downward trajectory as the dollar steadied off a one-week low, limiting appetite for the metal as a stronger dollar increases its price for holders of other currencies.

    “There has been a boost in risk appetite and the dollar has also climbed up resulting in some consolidation in the metal,” said Bart Melek, head of commodity strategies at TD Securities, adding some investors were also taking profits.

    Jerome Powell is to speak on Friday at the Fed’s annual economic symposium at Jackson Hole, Wyoming, which had to be moved online because of a U.S. Covid-19 surge.

    Investors remain divided over whether they will get a roadmap on when the U.S. central bank may start trimming its bond-buying program and if Powell would tone down the Fed’s hawkish tone, in turn helping gold.

    “The main market driver for this week is the Jackson Hole symposium. A few days back, people were strongly expecting the Fed to start tapering before the end of the year, now that’s again a question mark,” Carlo Alberto De Casa, market analyst at Kinesis.

    Some investors view gold as a hedge against higher inflation that could follow stimulus measures.

    Silver eased 0.6% to $23.69 per ounce, while palladium shed 1% to $2,448.92.

    Platinum fell 1.8% to $993.50.

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