Gold Down, But Remains Above $1,800 Mark Over Fed Taper

Gold was down on Tuesday morning in Asia, but remained above the $1,800 level. Hopes are also growing that the U.S. Federal Reserve could delay its planned asset tapering thanks to the continuing spread of COVID-19.

Gold futures edged down 0.17% to $1,803.25 by 12:12 AM ET (4:12 AM GMT) after rising about 1.4% during the previous session. The dollar, which normally moves inversely to gold, inched up on Tuesday after falling about 0.6% the day before.

The latest U.S. economic data released on Monday was mixed, with existing home sales at a higher-than-expected 5.99 million in July. However, August’s manufacturing purchasing managers index (PMI), Markit composite PMI and services PMI were 61.2, 55.4, and 55.2 respectively.

Further economic data to be released include the GDP for the second quarter on Thursday and the core personal consumption expenditures price index, alongside personal income and spending data, following on Friday.

Meanwhile, investors now look to the Fed’s annual Jackson Hole symposium, due to take place from Aug. 26 to Aug. 28. The central bank is widely expected to provide clues for its next steps regarding asset tapering and interest rate hikes.

The Bank of Korea will also hand down its policy decision on Thursday.

SPDR Gold Trust (P:GLD) said its holdings fell 0.5% to 1,006.66 tons on Monday, from 1,011.61 tons on Friday.

In other precious metals, silver fell 0.5% while platinum was up 0.3%. Palladium was steady at $2,401.13, after climbing 5.5% during the previous session. Investing.com

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