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Gold prices fell on Wednesday, under pressure from a stronger dollar and improving risk appetite, as investors this week awaited a speech by Federal Reserve Chairman Jerome Powell , for guidance on the US Federal Reserve’s stimulus reduction plans.
And gold fell 0.5% in spot trades to $ 1,793.50 an ounce (one ounce) at 0704 GMT, while US futures fell 0.7% to 1,795.90 $.
The dollar index rose 0.1%, negatively affecting the attractiveness of gold for holders of other currencies, while Asian stocks held onto recent gains. “Rising equity markets and discussions of risk appetite… are really reducing the need for gold as a hedge,” said Stephen Innes, managing partner at SBI Asset Management.
He added that the curve for the Corona virus in some severe outbreaks is receding and that full approval by the United States Food and Drug Administration for an anti-virus vaccine is also expected to lower the curve.
The administration on Monday gave its full approval to the vaccine, which is produced by Pfizer and Pontech, giving hope for an acceleration of vaccination campaigns.
Investors are now awaiting Powell’s speech at the Fed’s annual economic seminar in Jackson Hole, Wyoming on August 27 to see if he will provide a timeline for the monetary stimulus withdrawal.
Gold is seen as a hedge against inflation and monetary instability likely caused by widespread stimulus measures.
As for other precious metals, silver fell 0.7% to $ 23.68 an ounce, while platinum fell 1.7% to $ 994.49. And palladium fell 1.8% to $ 2,429.99.
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