By Eileen Soreng
Aug 19 (.) – Gold prices fell below the $ 2,000 an ounce mark on Wednesday, partly as a result of a pause in the dollar’s decline and because investors await more details on the Federal Reserve’s strategy to revive the economy after the crisis caused by the pandemic.
* Spot gold was down 0.71% at $ 1,986.77 an ounce at 1120 GMT, after climbing to $ 2,014.97 on Tuesday, its highest level in a week.
* US gold futures were down 0.9% at $ 1,994.70 an ounce.
* The dollar was trading mostly unchanged at about 92 points against a basket of major currencies, in a respite from the selloff wave that took it to its lowest level in two years on Tuesday.
* While gold gave way to the stabilization of the dollar, expectations that the US currency will continue to weaken have led the bullion to “consolidate a sustained presence above $ 2,000 and to reach all-time highs,” said Han Tan, analyst at FXTM.
* “The release of the Fed’s minutes could provide another headwind for the bullion, especially if there are obvious signs that the central bank is willing to tolerate further advance in US inflation,” Tan added.
* The Fed will release the minutes of its last monetary policy meeting at 1800 GMT and investors will be on the lookout for any suggestion that the body could take more action in September.
* Among other precious metals, silver was down 0.8% to $ 27.44 an ounce; while platinum was down 1.3% at $ 943.86 an ounce, and palladium was down 0.6% at $ 2,176.02 an ounce.
(Report by Eileen Soreng in Bengaluru. Edited in Spanish by Marion Giraldo)