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Gold reversed its trend to decline on Monday, August 31, as the dollar recovered some of its losses, despite the US Federal Reserve’s new policy framework, which indicates that interest rates will remain near zero for a longer time, has limited the losses of the yellow metal, which is considered a safe haven.
Spot gold fell 0.2% to 1961.54 dollars an ounce by 07:24 GMT, after reaching its highest level since August 19 at 1976.14 dollars in early trade in Asia. Gold has fallen 0.5% since the beginning of this month. In addition, US gold futures fell 0.3% to $ 1968.80.
The new monetary policy strategy of the Federal Reserve suggests that the US Federal Reserve’s policy rate for one night, which is already at zero, remains in place for possibly years to come, while policymakers hope for an increase in inflation. Lowering interest rates reduces the opportunity cost of owning the non-profit precious metal.
Among the other precious metals, silver jumped 1.2% to $ 27.82 an ounce and is heading for the fifth consecutive monthly gain, an increase of more than 14%.
