Gold Pulls Back Amid Dollar Strength

Published on Mar 24, 2021 12:57

COMEX Gold futures slipped as two week highs failed to sustain and the metal tanked in the US session. The Federal Reserve chair, Jerome Powell, told lawmakers that the economy was healing from the pandemic downturn and continued to play down inflation concerns at a hearing before House lawmakers on Tuesday. Fed`s best view is that the effect on inflation will be neither particularly large nor persistent and if it does pick up in a more concerning way, the central bank has the tools to deal with that. Fed effectively suggested that inflation is unlikely to see a meaningful spurt over coming months. This pulled COMEX Gold under $1730 per ounce. The US dollar index has jumped near a four month high of 92.50, keeping commodities under check.