Gold price fell on Tuesday following the peak gains from the past week. The price fell as the dollar rallied, following comments from Jerome Powell, Chairman of the US Federal Reserve, who said that the economic recovery is “uneven and far from complete. “
The Spot price for gold fell 0.25 percent to $1804.00 an ounce in the late trading session.
And US gold futures fell 0.1 percent to settle at $1805.90 an ounce.
In testimony before the Senate Banking Committee on Tuesday, Powell said it would take “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 .”
Gold price and Dollar returns
The lure of Gold, which does not yield a return, has also diminished with the rise in record US Treasury yields, approaching its highest level in a year, which it reached on Monday.
The rise in returns negatively affects 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 other precious metals, silver fell 2.16 percent to $27.55 an ounce, after hitting a three-year peak 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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