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Gold Holds Decline After Powell’s Hawkish Comments on Tapering -Breaking

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© Bloomberg. Gold Investments Ltd. bullion traders are seen sitting at one-hundred grams of gold bars in this photographed taken in London, U.K. on Wednesday, July 29th 2020. After a record rally, gold held firm as investors waited for the Federal Reserve meeting’s outcome. This was in anticipation of more gains from policymakers. Photographer Chris Ratcliffe/Bloomberg

(Bloomberg) — Gold held a drop after Federal Reserve Chair Jerome Powell said officials should weigh removing pandemic support at a faster pace, potentially paving the way for earlier-than-expected interest-rate hikes. 

Powell signaled Tuesday at the Senate Banking Committee that the matter could be discussed at the Fed’s next meeting Dec. 14-15, by which there will be more information on the new coronavirus strain. Powell also retired the word “transitory” to describe stubbornly high inflation. His comments weighed down the dollar and caused it to suffer steep losses.

Bullion posted a marginal loss last month as investors weighed the prospects of the Fed dialing back on pandemic-era stimulus amid elevated consumer prices, with the uncertainty surrounding the omicron variant’s impact on the global recovery. According to a plan that was announced in November, to slow down purchases by $15 billion per month at the U.S. central banking, it is now scheduled to finish its asset purchase program in mid-2022. 

The price of an ounce of gold was at $1,773.29 by 7:48 in Singapore. It had dropped 0.6% on Tuesday. Following a decline of 0.4% on Tuesday, the Bloomberg Dollar Spot Index remained little-changed. Silver fell 0.2%, palladium rose 0.6%, and platinum remained steady.

©2021 Bloomberg L.P.

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