{"id":1202488,"date":"2020-08-19T11:38:58","date_gmt":"2020-08-19T16:38:58","guid":{"rendered":"https:\/\/www.mining.com\/?p=1033134"},"modified":"2020-08-19T11:38:58","modified_gmt":"2020-08-19T16:38:58","slug":"gold-price-retreats-ahead-of-fed-minutes","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1202488","title":{"rendered":"Gold price retreats ahead of Fed minutes"},"content":{"rendered":"

Gold once again dropped below $2,000 an ounce<\/a> on Wednesday as both the US dollar and stock market edged higher, with investors awaiting minutes from the Federal Reserve for cues on future policy measures to rejuvenate the virus-stricken economy.<\/p>\n

Spot gold was down 1.8% to $1,962.99 per ounce by noon EDT, while US gold futures dropped 2.0% to $1,971.30 per ounce on the Comex in New York.<\/p>\n

The US dollar ticked up, halting a five-session sell-off that took the currency to its lowest in more than two years, while the S&P 500 equities index extended its historic rally.<\/p>\n

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“Higher stock markets and the dollar\u2019s effort to stabilize are acting as short-term headwinds for gold”<\/p>\n

George Gero, managing director at RBC Wealth Management<\/cite><\/p><\/blockquote>\n<\/figure>\n

\u201cThe dollar is brushing up against some very strong resistance and we\u2019re going to need a strong signal from the Fed to see the next wave of selling pressure to hit the dollar,\u201d Edward Moya, senior market analyst at broker OANDA, told Reuters<\/a><\/em>.<\/p>\n

\u201cThe Fed policy is going to remain extremely accommodative; there\u2019s too much uncertainty and some stalling in large parts of the recovery,\u201d Moya said, adding that the minutes — to be released in later in the afternoon — could help gold reach $2,000 once again.<\/p>\n

Widespread stimulus measures and a low interest rate environment have helped to propel gold prices up by nearly 30% so far this year, breaking multiple record highs<\/a> along the way.<\/p>\n

Gold was also pressured as a senior Trump administration official mentioned the possibility of a smaller coronavirus relief bill<\/a> worth around $500 billion, as opposed to one between $1 trillion and $3 trillion that had been previously expected.<\/p>\n

“Higher stock markets and the dollar\u2019s effort to stabilize are acting as short-term headwinds for gold,” George Gero, managing director at RBC Wealth Management, said in a note<\/a>.<\/p>\n

However, he added that any dips in gold will be bought on concerns over the global economy and increasing inflation expectations with more debt and stimulus.<\/p>\n

(With files from Reuters)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Gold once again dropped below $2,000 an ounce with the US dollar and stock market both up.<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2849,949,369],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1202488"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1202488"}],"version-history":[{"count":2,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1202488\/revisions"}],"predecessor-version":[{"id":1203075,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1202488\/revisions\/1203075"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1202488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1202488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1202488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}