Gold falls as dollar gains some ground; Fed symposium in focus

[BENGALURU] Gold prices fell on Wednesday as the dollar ticked higher, with investors awaiting Federal Reserve chair Jerome Powell's speech this week for possible guidance on tapering of the pandemic-era stimulus.

Spot gold fell 0.4 per cent to US$1,796.03 per ounce by 1.06am GMT, while US gold futures 0.6 per cent to US$1,797.50.

The dollar index inched 0.1 per cent higher, denting gold's appeal for those holding other currencies.

Goldman Sachs economists have raised the odds that the Fed will announce the start of tapering its bond purchases in November, predicting the central bank will likely opt to dial back purchases by US$15 billion then and at meetings that follow.

Focus will now be on Mr Powell's speech at the Fed's annual economic symposium at Jackson Hole, Wyoming, on Aug 27 and whether he gives a timeline on the stimulus withdrawal.

The United States could get Covid-19 under control by early next year if vaccinations ramp up, Anthony Fauci said on Tuesday, with the country now averaging 1,000 Covid deaths a day and over 150,000 new cases.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.2 per cent to 1,004.63 tonnes on Tuesday from 1,006.66 tonnes on Monday.

Silver eased 0.4 per cent to US$23.73 per ounce, while platinum fell 0.5 per cent to US$1,005.97. Palladium was down 0.6 per cent to US$2,459.89.

REUTERS