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Gold Continues Its Fall As Dollar Gains Safe-Haven Appeal Amid Equity Sell-Off And Slow US Recovery


Gold prices continue to see a fall and on the MCX in the futures market traded below Rs. 48700 at Rs. 48660, down Rs. 205 or 0.42 percent. The recent fall reflects the pricing in the international markets wherein gold has tanked owing to gains in the dollar that has hit an over a week high in comparison to rival currencies.

On Wednesday, in its monetary policy the US Federal Reserve stood pat on its benchmark interest rate, keeping that near zero and also continued with the ongoing bond-buying programme. This in turn pushed the dollar higher and set the bullion on course for the worst start to the year in a decade's time.

Gold Continues Its Fall As Dollar Gains Safe-Haven Appeal

Post the FOMC meet, Chair Jerome Powell made a comment that it would take 'some time' to achieve the threshold for altering purchases, making clear the central bank's not close to tapering them. Also, amid a sell-off in the equity space on weak global cues, investors flocked to the safety of the dollar,reducing safe-haven appeal of the bullion.

In the international markets, spot gold eased by 0.3 percent to $1837 per ounce. U.S. gold futures shed 0.6% to $1,833.70.

Other factor that continue to weigh on gold has been the delay in the $1.9 trillion US coronavirus aid that has still not received a go-ahead of the Republicans.

Read more about: gold gold prices
Story first published: Thursday, January 28, 2021, 12:13 [IST]
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