The Strategist

Gold falls in price as investors' risk appetite grows stronger

09/24/2021 - 07:18

Gold prices are down 1.5 per cent or more on Thursday evening, falling below $1,750 an ounce, as a wave of risk sentiment has hit the global financial market following the US Federal Reserve (Fed) meeting, trading data showed.

In the morning, the price of December gold futures on the New York Comex exchange was down 1.68%, or $29.95, to $1,748.6 per troy ounce. December silver futures were down 1.04% to $22.668 an ounce.

On Thursday, investors were wagering the outcome of the Federal Reserve meeting, in which the regulator has kept the refinancing rate at 0-0.25% per annum and a program of buyout of financial assets from the market of 120 billion dollars a month.

At the same time, financial markets were optimistic when Fed governor Jerome Powell said that the reduction of the asset buyback programme will be gradual and will probably end around the middle of next year. US and European stock indices as well as oil prices were rising noticeably. Against this background demand for safe haven assets, which includes gold, is decreasing and the precious metal is becoming cheaper.