Menu

Search

  |   Investing

Menu

  |   Investing

Search

Gold eases on profit-taking ahead of Fed Chair Powell's speech

Gold prices declined, following a sharp rise in the previous session, as investors squared positions ahead of a much-awaited speech from U.S. Federal Reserve Chairman Jerome Powell.

Spot gold was trading 0.8 percent down at $1,939.11 per ounce by 0630 GMT, having hit a low of $1902.72 the day before, its lowest since August 12. U.S. gold futures eased 0.3 percent to $1,947.90. On Wednesday, the metal rebounded from a 2-week low to close 1.3 percent higher on expectations of more stimulus measures.

The dollar slumped to its lowest level for the week as investors looked for hints from Federal Reserve Chairman Jerome Powell that the central bank might tweak its policy framework to help push up inflation.

Federal Reserve Chair Jerome Powell is expected to outline a more flexible approach to policy later in the day, including a shift to targeting an average inflation rate around 2 percent that will allow rates to stay low for longer.

Gold have advanced 28 percent so far this year as the Fed slashed interest rates to near zero and rolled out unprecedented stimulus measures to revive the coronavirus-hit economy.

Investor risk sentiment weakened, dented by fears of fresh tensions between the United States and China as Washington blacklisted 24 Chinese companies, while Beijing reportedly test fired missiles into the South China Sea.

The greenback against a basket of currencies traded flat at 93.91, having touched a low of 92.91 earlier, its lowest since August 21. The U.S. Treasury yields eased, with the benchmark 10-year note yield trading at 0.677 percent.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.