Gold slips below $1,800; 24K trades at Dh217.25 in Dubai

Dubai - Investors await Federal Reserve Chairman Jerome Powell's speech at the Fed's annual economic symposium for guidance

Gold prices fell below $1,800 an ounce on Wednesday ahead of US Federal Reserve Chairman Jerome Powell's speech for guidance on the central bank's taper plans.

Spot gold slid 0.42 per cent to $1,794.47 per ounce at 9.15 am UAE time. In the UAE, 24K gold was trading at Dh217.25 per gram at the opening of the market on Wednesday. Among the other variants of the precious metal, 22K was trading at Dh204.25, 21K at Dh194.75 and 18K at Dh167.0 per gram.

"The higher equity markets, the risk-on narrative... really diminishing the need for gold as a hedge," Stephen Innes, managing partner at SPI Asset Management, told Reuters.

The coronavirus curve in some hotspots is easing and the US Food and Drug Administration's approval of vaccinations should also bring down the curve, Innes said.

The US drug regulator granted full approval on Monday to the Pfizer Inc Covid-19 vaccine, raising hopes inoculations could accelerate. Risk sentiment was also underpinned by remarks from top US infectious disease expert Dr Anthony Fauci that the nation could get Covid-19 under control by early next year if vaccinations ramp up.

Investors now await Powell's speech at the Fed's annual economic symposium at Jackson Hole, Wyoming, on August 27 to see if he gives a timeline on the stimulus withdrawal.

The Fed is likely to "talk about the concept of tapering, but they won't give a timeline," IG Market analyst Kyle Rodda said.

"Everyone is willing to take a punt that they're going to maybe take a softer stance to tapering this weekend, and it's a good thing for gold."

waheedabbas@khaleejtimes.com

• Dubai