Home Money & Commodities Gold up, but gains from Powell speech capped by COVID-19 worries

Gold up, but gains from Powell speech capped by COVID-19 worries

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LONDON: Gold was up on Friday morning, with the sheen from the U.S. Federal Reserve’s new monetary policy overshadowed by data suggesting an COVID-19-induced economic slump.
Gold futures were up 0.80% at $1,948 by 12:55 AM ET (5:55 AM GMT).
Fed Chairman Jerome Powell unveiled the Fed’s new monetary policy strategy during his speech at the Jackson Hole symposium on Thursday. The strategy aims to address “shortfalls” from the “broad-based and inclusive goal” of full employment and promises to aim for 2% inflation on average.
Gold initially faced pressure as longer-term U.S. Treasury yields jumped to their highest level in months and strengthened the dollar.
But after U.S. data released on Thursday showed that 1.006 million initial jobless claims were filed over the past week, gains were capped over fears of a stall in the labor market recovery.
The number of COVID-19 cases continue their unceasing rise, with over 24.4 million cases globally as of August 28, according to Johns Hopkins University data.
Meanwhile, the U.S. Congress still has not reached a consensus over the latest stimulus measures. A Thursday phone call between U.S. House of Representatives Speaker Nancy Pelosi with White House Chief of Staff Mark Meadows ended without an agreement being reached.