Jaafar Qasim / Anatolia
Gold and the dollar prices fell in a rare simultaneous decline, on Wednesday, amid uncertainty in the direction of the Federal Reserve (the US central) regarding monetary policy.
And by 17:23 (GMT), gold lost in spot trading by 11.19 dollars, or 0.62 percent, to trade at 1793.43 dollars an ounce.
It also fell in US futures contracts by $12.75, or 0.71 percent, to $1,794.35 an ounce.
While the dollar index, which measures the performance of the US currency against a basket of six major competing currencies, decreased by 0.09 percent to 92.53 points.
Gold and the dollar usually move in opposite directions, vying for being a safe haven in times of crisis.
The weak dollar supports the attractiveness of gold, as the decline of the US currency reduces the cost of holding the precious metal for holders of other currencies.
The simultaneous decline of the dollar and gold reflects a state of anticipation and extreme caution, awaiting any signs that may be issued by the Federal Reserve regarding when to start tightening its monetary policy.
Over the past months, several US Central Bank officials have hinted that inflation in the country has reached a level that may push the Federal Reserve to early change its flexible monetary policy.
And on Tuesday, a report from the US Department of Labor showed a slowdown in inflation last August, for the second month in a row, which may prompt the Federal Reserve to postpone its plans to tighten monetary policy.
Since March 2020, the US Central Bank has kept interest rates close to zero, and maintained purchases of treasury bonds and securities guaranteed by mortgages, at a rate of 120 billion dollars per month.
Next week, the Federal Reserve’s Monetary Policy Committee will meet to determine the direction of the US Central Bank during the coming period.
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