Gold prices slump, though losses cap on Fed hopes
Gold prices saw its fourth consecutive slump in five days before trimming losses later on Tuesday amid a strengthening Dollar as expectations rose for U.S. Fed Chair Jerome Powell’s speech on Thursday.
Gold futures for the December delivery on Comex slipped by 0.8% ($16.10), trading at $1,923.10 per ounce. Comex was up on last week’s Tuesday, closing at $2,013.10. However, it has lost 4.5% ($90) since. On Thursday’s session, gold saw a high of $1,9435.95 with a low of $1,919.85.
Meanwhile, gold’s spot price slipped by 0.06% ($1.19) to $1,927.48 per ounce.
The Dollar Index also dipped below a key 93-point benchmark after it had reached a session high of 93.347 during the day. It had previously slumped inches above a 92-point low, but has since recovered after market sentiment was boosted by potential COVID-19 treatments and positive U.S. economic data.
Investors are currently awaiting Powell’s speech which may give clues about the central bank’s monetary policy amid the pandemic. Powell, who will be speaking at home instead of the venue in Jackson Hole, is expected to push the case for a stronger fiscal stimulus to put a floor on a virus-hit economy. Many believe that the speech would give gold a boost while weakening the Dollar.