Gold prices fell today, Thursday, as investors expected the US Federal Reserve to scale back its bond-buying program to counter rising inflation despite economic concerns over the Omicron spread.
And according to Arab Net, gold in spot transactions fell 0.3% to $ 1777.87 an ounce, and US gold futures fell 0.3% to record $ 1778.10.
In testimony to Congress on Wednesday, Federal Reserve Chairman Jerome Powell said the central bank must be prepared to respond to the possibility that inflation does not subside in the second half of 2022, Reuters reported.
Powell also said that the bank would consider ending its bond-buying program at a faster pace at its meeting scheduled for December 14.
Gold is usually seen as a way to hedge against inflation, but reducing stimulus measures and raising interest rates push government bond yields up, which increases the opportunity cost of buying non-yielding gold.
As for other precious metals, silver rose in spot transactions 0.5% to $22.42 an ounce. Platinum rose 0.7% to $940.09, while palladium rose 0.5% to $1,756.46.
