Gold loses its luster after the US Federal Reserve’s statements about reducing stimulus


Gold prices fell on Thursday, as investors expected the US Federal Reserve to scale back its bond-buying program at a faster pace to counter soaring inflation, despite economic concerns over the spread of the new mutated Omicron from the coronavirus.
And gold fell in immediate transactions 0.3% to 1777.87 dollars an ounce. And US gold futures fell 0.3, to $ 1778.10.
Testifying before Congress on Wednesday, Federal Reserve Chairman Jerome Powell said the central bank must be prepared to respond to the possibility that inflation does not subside in the second half of 2022.
Powell also said that the bank will consider ending its bond-buying program at a faster pace at its meeting scheduled for December 14.
Gold is usually seen as a hedge against inflation, but reducing stimulus measures and raising interest rates push government bond yields up, increasing the opportunity cost of buying non-yielding gold.
As for other precious metals, silver rose in spot transactions 0.5% to $22.42 an ounce. Platinum rose 0.7% to $940.09, while palladium rose 0.5% to $1,756.46. (Reuters)


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