Commodity News
HeadLine : Gold flat as dollar holds firm on Fed taper bets
Date : Oct 12 2021
Gold traded flat in early Asian trade on Tuesday as the dollar held firm on expectations that the Federal Reserve will announce a tapering of its bond purchases next month. Spot gold was unchanged at $1,753.77 per ounce, while U.S. gold futures were little changed at $1,754.90. The dollar hovered close to a one-year high touched last month amid surging energy prices and expectations the U.S. central bank would soon start normalising polic  Gold is seen as a hedge against inflation and currency debasement likely from the widespread stimulus. The Fed’s tapering could tackle both those conditions, diminishing bullion’s appeal. The current bout of inflation in the euro zone is not a trigger for monetary policy action as growth in services prices and wages remains weak, European Central Bank chief economist Philip Lane said on Monday. 

Source: Reuters
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