Gold prices fall following the Federal Reserve’s tendency to ease monetary policy

Gold prices fell Monday as risk appetite improved after US Federal Reserve Chairman Jerome Powell calmed market fears of a rapid withdrawal of the stimulus applied to mitigate the impact of the Corona virus pandemic. reducing the attractiveness of the yellow metal as a safe haven.

And gold fell in the spot trade by 0.2% to $ 1813.76 an ounce, and at the start of the session, gold rose to its highest level since August 4 at $ 1822.92.

US gold futures fell 0.2% to $ 1,816.50.

“People are more interested in the stock markets. But in corrected, we could see a strong rally in gold prices, “said Vandana Bharti, associate vice president of materials research. prime at SMC Comtrade.

Vandana added that the range $ 1,917 – $ 1,940 would be a major resistance through the end of the year.

During a speech online at the Jackson Hole Economic Conference, Powell gave no indication as to when the central bank planned to reduce its purchases of asset, but he said it could be “quest’year”.

He indicated that he will remain cautious in any final decision to raise interest rates.

Powell’s dovish comments helped gold climb 1.4% on Friday, pushing the US dollar index to a two-week low.

As for the other precious metals, silver fell 0.2% to $ 23.95 an ounce, while platinum fell 0.1% to $ 1,006.76 and palladium fell 0, 4% at $ 2,409.10.

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