Gold Fell as Dollar Rose, Fed in Spotlight

Gold fell on Wednesday, August 25, as the dollar rose, while investors awaiting a speech by Jerome Powell, President of the US Federal Reserve, to obtain indications about the monetary strategy, but concerns about the global economy, which is hit by the Coronavirus pandemic, kept prices above the level of $1900.

Moreover, gold fell in immediate transactions 0.5% to $1918.77 per ounce. Gold futures in US rose 0.1% to $1925.30.

The dollar index rose 0.2% against its rivals, which increases the cost of gold to holders of forigen currencies, while attention is focused on a scheduled speech by Powell on Thursday, which is expected to provide more clarity on the Fed’s vision towards inflation and monetary policy.

Fund flows in search of safe haven in gold stopped after senior trade officials in the United States and China confirmed their commitment to phase-one trade deal between the two largest economies in the world.