Gold Falls on Strong US Dollar After Fed Forecast

Gold prices fell Thursday, September 17th, as the dollar rose after the US Federal Reserve painted a positive picture of the economic recovery, but declined to provide concrete indications of further stimulus.

By 05:24 GMT, spot gold fell 0.8% to $ 1943.70 an ounce, while US gold futures fell 1% to $ 1950.50.

The dollar index rose to its highest level in more than a week against the rest of the currencies after the Fed hinted that it expects the US economy’s recovery from the Corona pandemic to accelerate and unemployment decline at a faster rate than the central bank expected in June.

Gold received some support from the central bank’s pledge to keep interest rates near zero levels until inflation goes on a path that “moderately exceeds” the 2% target “for some time”.

As for other precious metals, silver fell 1.5% to $ 26.82 an ounce, and platinum fell 2.3% to $ 946.10 an ounce. Palladium fell 1.3% to $ 2,367.49 an ounce.