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Gold falls as safe-haven appeal shifts to dollar

Spot gold eased 0.3% to $1,837.67 per ounce by 0308 GMT. Prices had fallen to their lowest since Jan. 18 at $1,830.80 on Wednesday. U.S. gold futures shed 0.6% to $1,833.70.

January 28, 2021 / 10:30 AM IST
Gold

Gold

Gold slipped on Thursday as investors flocked to the safety of the dollar after an equity sell-off, while the U.S. Federal Reserve flagging concerns around the pace of the recovery in the world's largest economy lent further support to the greenback.

Spot gold eased 0.3% to $1,837.67 per ounce by 0308 GMT. Prices had fallen to their lowest since Jan. 18 at $1,830.80 on Wednesday. U.S. gold futures shed 0.6% to $1,833.70.

"The market seems to be very disappointed with the Fed... we didn't get anything additional in terms of policy guidance or stimulus prospects, so that sunk risk assets, pushed the dollar up and gold got caught in that trade," said IG Market analyst Kyle Rodda.

The Fed kept its key interest rates and monthly bond purchases unchanged and said the pace of the recovery in U.S. economic activity and employment had moderated in recent months.