Gold slips on profit taking after Fed-led rally

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Gold eased on Thursday as investors made profits after prices peaked for more than a week on gloomy US Federal Reserve economic projections.Spot gold lost 0.2% to $ 1,732.39 an ounce at 12:32 GMT after hitting its highest level since June 2 at $ 1,739.68 earlier in the session. The US gold futures contract climbed 1.2% to $ 1,741.80.

Gold spot prices rose 1.3% on Wednesday, their largest daily percentage increase for more than a month, after the Fed said the road ahead to recover from the induced crisis by coronaviruses would be long.

“We are seeing profit taking … But gold has reached the level of $ 1,725, which suggests that we are currently in a rather bullish format,” said Stephen Innes, chief market strategist at the company. AxiCorp financial services.

“The underlying engagement with the Fed that their targets and rates will remain unchanged until 2022 is quite positive for the gold market. ”

The US central bank reiterated its promise of continued extraordinary support and also stressed the need to keep the key rate close to zero until at least 2022.

Fed policymakers have signaled that the impact of the Covid-19 pandemic would have an impact on the economy for years to come, rather than being quickly reversed when trade reopens.

Significant stimulus packages and low interest rates tend to support gold, which is often seen as a hedge against inflation and currency worsening.

Among other metals, silver fell 2% to $ 17.88 an ounce, after increasing 3.8% in the last session.

Palladium lost 1% to $ 1,928.44 an ounce and platinum fell 0.2% to $ 831.04.

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