Gold price takes a step back after Fed speak – by Anna Golubova (Kitco News – August 2, 2022)

(Kitco News) The gold market’s price action is taking a breather following hawkish commentary from the Federal Reserve speakers, with prices pulling further away from the $1,800 an ounce target.

The gold price jumped to a daily high of $1,805 an ounce Tuesday morning, led by increased geopolitical tensions as House Speaker Nancy Pelosi landed in Taiwan amid China’s threats of “serious consequences” for her visit.

However, gold gave back all of its daily gains following aggressive rhetoric from the Fed, with December Comex gold futures last trading at $1,777.10, down $10 on the day.

“Gold pared gains after Wall Street became optimistic that tensions between the two world’s largest economies would get out-of-hand,” said OANDA’s senior maker analyst Edward Moya. “A strong dollar is also weighing on gold as the greenback’s pullback over the past couple weeks appears to be over.”

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