Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Gold Falls Again but Eases Losses After Hours on Fed Hopes

Commodities Aug 25, 2020 03:33PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
XAU/USD
-0.09%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DX
+0.13%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Gold
-0.07%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GLD
+0.09%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Barani Krishnan

Investing.com - Gold prices fell for fourth time in five days before paring losses in Tuesday’s after-hours trade as the dollar gave back some strength on expectations of a dovish speech due over the next 48 hours from Federal Reserve Chairman Jay Powell.

Benchmark December gold futures on Comex settled down $16.10, or 0.8%, at $1,923.10 per ounce. The last time Comex rose for a day was last Tuesday, a week ago, when it settled at 2,013.10. It has lost exactly $90, or 4.5%, since. In Thursday’s play, the session high was $1,943.95 while the low was $1,919.85. 

But in a comforting sign to gold bulls, the Comex benchmark contract pulled back about two-thirds of its losses in after-hours trade, trading at  $1,933.90, or just $5.30 lower by 3:20 PM ET. Percentage-wise, the slide stood at under 0.3%.

The spot price of gold, which reflects trades in bullion, was, meanwhile, down by just $1.19, or 0.06%, at $1,927.489.

The dollar, the alternative trade to gold, gave back some of its strength after Comex’s settlement. The Dollar Index, which pits the greenback against a basket of six currencies dipped below the key 93-point handle after trading at a high of 93.347 earlier in the day. Just a week ago, the Dollar Index was hovering at the low 92s. It has rebounded since on a surge of risk appetite sparked by new coronavirus treatments announced by the Trump administration and positive U.S. housing and other data.

Still, all that could change for the greenback by Thursday, when Fed Chairman Powell makes his assessment on the U.S. economy at the central bank’s annual Monetary Policy Framework Review amid the coronavirus pandemic. Powell — who will be speaking from home instead of the typical Jackson Hole, Wyoming, venue for the speech — is expected to make the case for stronger monetary stimulus to help the economy. Such a dynamic will clearly weaken the dollar and boost gold.

“This puts all eyes on Fed Chair Powell’s Jackson Hole speech on Thursday,” said Ed Moya, an analyst at OANDA in New York. 

“Gold has had a few bad days as progress in the fight against COVID-19 and the easing of US-China tensions that took away the need for safe-havens,” Moya added.  “The risks to the global economic outlook and election uncertainty should see gold bulls defend the $1,900 level.  Until the stimulus trade is affirmed by governments and central banks, gold could remain in limbo for a while.”

Gold Falls Again but Eases Losses After Hours on Fed Hopes
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (18)
Favour Zino
Favour Zino Aug 25, 2020 6:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
great and you doing tonight
Dick Jones
Dick Jones Aug 25, 2020 6:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Barani Krishnan i read the articles here by you ,Chris V and another author(can't remember her name) everyday. keep up the great analysis and thank you
Barani Krishnan
Barani Krishnan Aug 25, 2020 5:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thank you all for your feedback. Wishing you the very best. Goodnight.
Ali Rate
Ali Rate Aug 25, 2020 5:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
welcome bro
Ali Rate
Ali Rate Aug 25, 2020 5:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
welcome bro💝💖💚
Ali Rate
Ali Rate Aug 25, 2020 5:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
my bro you are nice God bless you
Wiwien Sumrit
Wiwien Sumrit Aug 25, 2020 5:34PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thank you .
Aydin Altin
Aydin Altin Aug 25, 2020 5:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
thanks for the simple and practical info.
Meself Meself
Meself Meself Aug 25, 2020 5:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
powell is the market maker obviously
Matheus Martinelli
Matheus Martinelli Aug 25, 2020 5:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thanks again for the article! Keep up the good work!
Barani Krishnan
Barani Krishnan Aug 25, 2020 5:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You're most welcome, Matheus.
Dw Sterling
Dw Sterling Aug 25, 2020 5:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This is impotant? Buy n hold
The Big Fish
The Big Fish Aug 25, 2020 5:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Mr. Krishnan, where do you get the info that the Jackson Hole meeting could be dovish? don't disagree. honestly curious
Zakk Lioras
Zakk Lioras Aug 25, 2020 5:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
thanks for the article Mr Krishnan! I had also the same question... you think Gold is gonna fall after the speech??? King regards!
Barani Krishnan
Barani Krishnan Aug 25, 2020 5:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Big Fish, apols but it's in most of the notes we've been getting from research houses since last week. The expectation is Powell will be in the mood for more stimulus and an average inflation target instead of the largely missed 2 pct.
Barani Krishnan
Barani Krishnan Aug 25, 2020 5:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Zakk Lioras  Please see my reply to Big Fish. Thanks.
The Big Fish
The Big Fish Aug 25, 2020 5:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Muhammad Rafiq Sam
Muhammad Rafiq Sam Aug 25, 2020 4:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
thank you
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email