Gold consolidates near 1-month peak on cautious Fed

Covid Bailout: Nothing to Do with Covid

Gold last traded at $1,814 an ounce. Silver at $23.94 an ounce.

NEWS SUMMARY: Precious metal prices rose Tuesday on momentum buying and a weaker dollar. U.S. stocks traded mixed to close out a winning month with the major indexes reaching record highs.

Reuters--"Risk appetite got a boost after U.S. Federal Reserve chief Jerome Powell assuaged market fears of a quick withdrawal of pandemic-era stimulus, dampening bullion's safe-haven appeal....

'People are more interested in equity markets, but in case of a correction we may see a sharp rise in gold prices,' Vandana Bharti, assistant vice-president, commodity research at SMC Comtradem said.

In a virtual speech at the Jackson Hole economic conference, Powell offered no signal on when the central bank plans to cut its asset purchases beyond saying it could be 'this year' and indicated it would remain cautious in any eventual decision to raise interest rates....

Powell's dovish statement helped gold gain 1.4% on Friday, while pushed the dollar index to a two-week low.

'The market is starting to re-adjust expectations for U.S. rate hikes after Powell's speech on Friday, which was the green light for gold to move higher,' Stephen Innes, managing partner at SPI Asset Management said."