* U.S. consumer confidence hits lowest level in six years Aug.26 (Reuters) – Gold fell on Wednesday as the dollar strengthened, investors awaiting a speech by U.S. Federal Reserve Chairman Jerome Powell for clues of monetary strategy, but concerns over the ravaged global economy the pandemic have kept prices above the $ 1,900 mark.
Spot gold was down 0.5% to $ 1,918.77 an ounce at 0651 GMT. US gold futures edged up 0.1% to $ 1,925.30.
Gold’s pullback to a key support level of $ 1,910 “is in part attributed to the intraday rebound in the US dollar as traders await Powell’s speech,” said Margaret Yang, DailyFx strategist.
The dollar index rose 0.2% against its rivals, making gold expensive for other currency holders, with the emphasis on Powell’s speech in Jackson Hole on Thursday, which is expected to further clarify the opinion of the US central bank on inflation and monetary policy.
Safe-haven inflows into gold also slowed after top U.S. and Chinese trade officials reaffirmed their commitment to a Phase 1 trade deal between the world’s two largest economies.
“Overnight U.S.-Chinese trade reports that tensions have eased slightly have dampened investor appetite for safe-haven stocks, but there is obviously a lot of water to go under this bridge,” he said. said ANZ analyst Daniel Hynes.
Gold’s overall trajectory has remained positive, analysts said, with the metal gaining 27% so far this year as investors seek hedge against possible inflation and currency downgrade due to the print. unprecedented monetary policy by central banks and near zero interest rates around the world.
“There are still a lot of concerns about the economy and they continue to indicate that rates are going to be low and that stimulus will continue which should boost gold,” Hynes added.
Adding to doubts about an economic rebound from the coronavirus crisis, a Conference Board investigation showed U.S. consumer confidence unexpectedly hit its lowest level in six years in August.
Silver fell 0.3% to $ 26.33 an ounce, platinum fell 0.4% to $ 922.99, while palladium gained 0.6% to $ 2,178.14.
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