Gold retreats from morning highs as Fed speech fails to reassure markets

Gold retreats from morning highs as Fed speech fails to reassure markets

Gold prices soared to a one-week high earlier on Thursday but later retreated after the U.S. Federal Reserve failed to reassure markets that it would pledge to continue a round of asset purchases.

Gold futures for the December delivery on Comex fell by 1% ($19.90) to $1,932 per ounce, trimming most of its gains on Wednesday. On Thursday morning, it peaked to a $1,986.70 high, the closest it has been since August’s $2,015.

The spot price of gold was worse-hit compared to Comex, with prices dropping by 1.4% ($26.88) and trading at $1,927.33 at 01:42 PM ET (17:42 GMT). It peaked to $1,976.66 earlier on Thursday, its highest since August 19.

The yellow metal’s slump came even after Fed Chair Jerome Powell said that the bank would not attempt an “average inflation target” as it tries to mitigate relatively-high unemployment expected for at least a couple of years.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?