Gold down for 3rd day as dollar firms ahead of Fed meeting

Tuesday,   15-Jun-2021   08:55 AM (IST)

Gold prices on Tuesday fell for a third straight day, as an uptick in the dollar dented the safe-haven metal’s appeal, while investors awaited the U.S. Federal Reserve meeting for clues on the central bank’s monetary policy outlook. Spot gold was down 0.2% at $1,861.96 per ounce, as of 0224 GMT, after falling to its lowest since May 17 at $1,843.99 on Monday. U.S. gold futures eased 0.1% to $1,863.10. The dollar strengthened 0.1% to hover close to a one-month high versus its rivals, making gold more expensive for other currency holders. Investors await the Wednesday outcome of the Fed’s two-day policy meeting. Nearly 60% of economists in a Reuters poll said a much-anticipated taper announcement will come in the next quarter, despite a patchy recovery in the job market. Also on the radar, U.S. monthly retail sales data due later in the day. Recent data showing a spike in U.S. consumer prices has benefited gold as it is seen as a hedge against inflation. But, growing inflationary pressure could also force policymakers into an earlier tapering of stimulus. Elsewhere, silver dropped 0.7% to $27.64 per ounce, palladium was steady at $2,749.66, and platinum slipped 0.6% to $1,158.54.