Gold Falls as The Dollar Rises, Ahead of Jackson Hole

Gold prices fell, as the dollar rose ahead of a scheduled speech by US Federal Reserve Chairman Jerome Powell this week, while investors awaited signs of reducing economic stimulus.

And gold fell in spot transactions 0.3% to $ 1784.82 an ounce) by 0705 GMT, while US futures fell 0.3% to $ 1785.

The dollar index rose 0.1%, putting pressure on the yellow metal, which is denominated in the US currency.

Jerome Powell is scheduled to speak at the US central bank’s annual economic seminar in Jackson Hole, Wyoming, on Friday.

While an increasing number of Federal Reserve officials debate the possibility of curtailing the bond-buying program, the increase in infections with the mutated strain Delta strain of the Coronavirus is casting a shadow of uncertainty on that view.

Gold is considered a hedge against inflation and currency instability. The Fed’s cut in stimulus will remedy both, reducing gold’s appeal.