Gold Falls Due to The Rise of The Dollar And The Appetite For Risk

Gold prices fell on Wednesday, August 25, pressured by the dollar’s rise and risk appetite, while investors awaited a speech by Federal Reserve Chairman Jerome Powell this week for indications on the US Federal Reserve’s plans to reduce stimulus.

And gold fell in spot transactions by about 0.5% to $ 1793.50 an ounce, while US futures fell 0.7% to $ 1795.90.

The dollar index rose 0.1%, negatively affecting the attractiveness of gold to holders of other currencies, while Asian stocks held on to the gains they achieved recently.

Investors are now awaiting Powell’s speech at the Fed’s annual economic seminar in Jackson Hole, Wyoming, on August 27, to see if he will provide a timetable for tapering.

Gold is seen as a hedge against inflation and currency instability likely caused by widespread stimulus measures.