Gold Prices Drop After The Federal Reserve

Gold prices fell on Monday, August 30, as risk appetite improved after US Federal Reserve Chairman Jerome Powell calmed market fears of a rapid withdrawal of stimulus applied to mitigate the impact of the Coronavirus pandemic, reducing the yellow metal’s safe-haven appeal.

Spot gold fell 0.2% to $1,813.76 an ounce by 07:27 GMT.

Earlier in the session, gold rose to its highest level since August 4th to $1,822.92. US gold futures fell 0.2% to $1,816.50.

During an online speech at the Jackson Hole Economic Conference, Powell gave no indication of when the central bank planned for tapering but said it might be “this year”.

He indicated that he would remain cautious in any final decision to raise interest rates.

Powell’s dovish comments helped gold rise 1.4% on Friday while pushing the US dollar index to a two-week low.