News

Gold prices cross the $1800 barrier ahead of Powell’s comments

  • 27 August, 2021
  • 12:53 pm EEST

Gold prices rose above the $1800 level, during trading on Friday, ahead of Federal Reserve Chairman Jerome Powell’s comments.

The yellow metal also benefited from the hawkish comments of the President of the US Central Bank in Dallas, Robert Kaplan, which led to aversion to risk.

Gold prices

At 08:10 AM GMT, gold futures contracts, for December delivery, were up 0.3%, at $1800.80 an ounce.

The price of the yellow metal also increased in spot transactions by about 0.3%, recording 1798.12 dollars an ounce.

Other metals also rose, and the price of silver futures contracts, for December delivery, increased by 0.6%, to record $23.74 an ounce.

The price of platinum in spot trading jumped more than 1%, to $991.55 an ounce.

The dollar index, which monitors the performance of the US paper against a basket of 6 major currencies, decreased by 0.03%, to record 93.0310 points.

Influential factors

Today, investors are looking forward to Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium, where some US central bank officials called for a reduction in bond purchases.

Caution prevailed in gold markets, following the attack on Kabul airport, which killed dozens of civilians and at least 13 US soldiers, Reuters reported, as concerns about developments in Afghanistan positively affect investor sentiment.

Gold’s rise coincided with a decline in US stocks, which ended their continuous momentum, yesterday, Thursday, and closed lower, and fears of a possible shift in the Federal Reserve’s policy led to a wave of selling in risky assets ahead of the Jackson Hole conference.

A number of Federal Reserve officials are discussing the possibility of curtailing the bond-buying program, if the increase in infections with the mutated strain Delta of the Coronavirus casts uncertainty.

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