Gold futures were pulled down by a firmer dollar as investors await Jackson Hole meeting

Prices of Gold

The price of gold was pulled down by a much stronger dollar on Wednesday as investors are keeping a closer look on the annual central banking meeting of the U.S. Federal Reserve at Jackson Hole for any geopolitical headlines.

The United States imposed new sanctions that are related to North Korea which targeted Russia and Chinese companies and individuals for supporting the weapon programs of Pyongyang. However it stopped short to focus on Chinese banks.

The 12 banks of the U.S. Federal Reserve want to steady the rates of commercial banks that are charged for emergency loans before the last policy of central banks in the United States that discussed discount rates last Tuesday.

Looking on gold prices, U.S. gold futures lost dropped as low as 0.2 percent to finish at $1,288.70 an ounce for its December delivery and spot gold fell more than 0.1 percent to settle at $1,283.10 an ounce. Spot gold lost about 0.5 percent on the session earlier.

The U.S. dollar index was 0.1 percent higher to 93.605 against its major peers on the day. It is already given that a stronger dollar is not good for the yellow metal because it will make the non-yielding bullion expensive for owners outside the United States, which will further weaken the demand.

In other news, there are possibilities that the U.S. Air Force will expand training in the air force in Afghanistan and intensify its strikes to the country after the decision of U.S. President Donald Trump to forge ahead with the war.


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