Gold fell from the peak of a week today, Tuesday, as it was pressured by the rise in the dollar, following comments from Jerome Powell, Chairman of the US Federal Reserve, who said that the economic recovery is “uneven and far from complete“.
Spot gold fell 0.25 percent to $ 1804.00 an ounce in late trading session.
And US gold futures fell 0.1 percent to settle at $ 1805.90 an ounce.
Oanda analyst Craig Erlam said the gold moves indicated a “wait-and-see approach.”“.
In testimony before the Senate Banking Committee on Tuesday, Powell said that it would be “some time” before the Federal Reserve considered changing its policies to help the world’s largest economy return to full employment, and that he “does not expect inflation to rise to alarming levels.”.”
The attractiveness of the yellow metal, which yields no return, has also diminished with the rise of record US Treasury bond yields, approaching its highest level in a year, which it reached on Monday..
The high returns negatively affect the attractiveness of gold as a hedge against inflation as it increases the opportunity cost of owning the precious metal that does not generate a return..
As for the other precious metals, silver fell 2.16 percent to $ 27.55 an ounce, after reaching a three-year high earlier at $ 28.31..
Platinum fell 3.3 percent to $ 1229.80 an ounce, while palladium lost 1.9 percent to $ 2349.00 an ounce.
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