The gold price is weakening today after the Federal Reserve (Fed) postpones its tapering program again for the time being. India is stocking up on gold.
Gold futures fell 0.80% to $1,766.55 in Asia 8:00 PM ET.
The dollar, which often moves in the opposite direction as gold, has weakened but remains near its highs.
Fed Chairman Jerome Powell announced at the press conference at the end of the FOMC meeting to postpone tapering again. However, it is very likely that the Fed will start tapering towards the end of the year. According to speculation, the start will be November should the labor market data continue to develop positively. Interest rates are expected to remain low beyond 2022 and rise toward the beginning of 2023.
India again imported more gold from Switzerland in August. India is considered next to China important import countries for gold in Asia. Gold has always held a special place in most Asian cultures. So it is considered normal to give away gold at weddings. Gold imports in August are said to have almost doubled compared to the previous year.
In the Asia-Pacific region, the Bank of Japan is holding rates at -0.10%.
China Evergrande Group (HK:3333) has temporarily eased concerns over the ongoing debt crisis. This is because the company has reached an agreement to pay interest on onshore bonds. While the People’s Bank of China injected 120 billion yuan into the banking system.
Meanwhile, the Russian Ministry of Finance announced that from January to July 173.99 tons of gold was produced, a decrease from 176.30 tons in the same period last year.
Other precious metals:
The silver price decreased by 0.5% to $22,70/ounce.
Platinum fell 0.4% to $986.00/ounce.
Palladium slipped 0.1% to $2,020.96/ounce.