August 19, 2021

Nightmares Are Back! Gold Falls Again

 Gold prices fell lower as the U.S. dollar continued to record gains after minutes of the FOMC meeting showed most Federal Reserve (Fed) policymakers agreed to begin easing bond purchases this year.

In the Asian session, the precious metal traded down 0.4% at $ 1,779 an ounce, while gold futures were down $ 1,781 an ounce.

Fed policymakers generally assess that the benchmark of ‘greater progress’ in achieving maximum employment and inflation targets has yet to be met, and risks to the economic outlook remain.

Still, most policymakers see that the U.S. economy will continue to move toward such progress.

Provided the economy grows broadly as expected, they assess that the benchmarks set in the Fed’s guidance on reducing asset purchases will be achievable this year.

The dollar index rose to a four -and -a -half -month high following these optimistic expectations, making gold prices more expensive for holders of other major currencies.

Gold prices are now holding up with still risky sentiment amid growing concerns over the Covid-19 case,