Gold Reverses its Losses Following Powell’s Press Conference

Gold prices finished Wednesday down ahead of the U.S. Federal Reserve rate decision and moved lower after the release of the Fed’s policy statement amid a brief rise for the U.S. Dollar (USD).

Taper talks had an immediate impact on the zero-yielding yellow metal, which remains relatively supported by inflation fears.

Gold futures for August delivery settled at $1,799.7 per ounce, falling by about 0.01%.

Spot gold is currently trading higher for the day by about 0.50% at $1,808.98 per ounce.

The Fed has decided to maintain interest rates unchanged at a range between 0% and 0.25%.

The Fed will also continue to increase its holdings of Treasury securities by $80 billion per month and mortgage-backed securities by $40 billion per month, a total of $120 billion a month, but could soon begin cutting mortgage-backed securities purchases before it begins scaling back Treasury and at a relatively faster pace, according to the Fed Chair Jerome Powell.

Powell’s remarks came during the press conference that followed the conclusion of the two-day meeting by the Federal Reserve Open Market Committee (FOMC) and the release of the policy statement.