Gold declines as dollar appeal jumps
- 28 Jan 2021
Gulf Today Report
Gold prices fell on Thursday as dollar appeals increase and US Federal Reserve indicated worry about the slow-paced of economic recovery.
Spot gold eased 0.3% to $1,837.67 per ounce while US gold futures shed 0.6% to $1,833.70.
Kyle Rodda, IG Market analyst said, "the market seems to be very disappointed with the Fed... we didn't get anything additional in terms of policy guidance or stimulus prospects so that sunk risk assets, pushed the dollar up and gold got caught in that trade."
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The Fed maintained its key interest rates and monthly bond purchases, it added that the US economic activity and employment.
The dollar has recorded more than one-week hit in the previous session, reducing gold appeal.
Also, the $1.9 trillion US coronavirus stimulus package is yet to be signed, thereby delaying gold.
Gold seems to be in a short-term period of consolidation, waiting for further cues on more fiscal and monetary stimulus to potentially push it higher in the medium to long term ... for the time being gold's appeal has really diminished," Rodda said.
