Gold Falls, Hovers Above $1,800 on Virus Fears

Gold prices fell on Tuesday, August 24th but hovered above the psychologically important $1800 level, as the growing threat from increased delta cases fueled expectations that the Federal Reserve may delay easing its accommodative stance.

Spot gold fell 0.1% to $1,803.53 an ounce, after jumping about 1.4% on Monday. And gold settled in US futures contracts at 1806.30 dollars.

The dollar index was stable after falling about 0.6% on Monday.

IHS Markit data showed that business growth in the US slowed for a third consecutive month in August, while the fast-spreading delta strain dampens recovery momentum.

Investors are now focused on a scheduled speech by US Federal Reserve Chairman Jerome Powell at the annual Jackson Hole Symposium in Wyoming, as they await any indications of plans by the US central bank to scale back stimulus.

And Asian stocks received support today from the easing of concern about an immediate reduction of stimulus.