Gold fell after comments from the US Federal Reserve

On Wednesday, gold prices fell from $1,834.90 to $1.809.05 an ounce. On Thursday, the asset managed to recover somewhat – to $1,816.55. Strong pressure on the quotes of the precious metal was exerted by the comments of the vice-chairman of the US Federal Reserve on the limitation of soft policy.

Richard Clarida said the central bank intends to curtail its loose monetary policy later this year by cutting back in part on bond purchases from the market. The vice chairman also noted that all the conditions for raising the key interest rate in the United States may exist by the end of 2022, in which case the beginning of policy normalization in 2023 will fully correspond to the average inflation targeting scheme.

This scheme was adopted by the Fed last August. Then the Central Bank promised to keep rates around zero until full employment is observed and inflation reaches the 2% target.

Such news put pressure on the gold rate and supported the dollar. Analysts note that «this creates an interesting situation as the market awaits US employment data on Friday.»