By Adam Claringbull
Investing.com – Gold was down on Thursday morning in Asia, as a stronger dollar pulled the yellow metal back from its two-week high. Better-than-expected U.S. unemployment figures were behind the improved dollar.
Gold futures were down 1.23% to $1,946.30 by 12:49 AM ET (5:49 AM GMT).
The dollar pushed gold down steeply on Thursday although the U.S. Federal Reserve also announced yesterday that it was keeping interest rates close to zero until inflation rises to over 2%. Fed Chairman Jerome Powell also stated that the way forward to economic recovery was still very much uncertain and expected economic activity to remain low for some time.
The Bank of Japan kept its own monetary policy steady as it handed down its decision earlier in the day, with investors looking to see how BOJ works with newly elected Prime Minister Yoshihide Suga. The Bank of England will hand down its policy later in the day.
The COVID-19 pandemic continues to grow, dampening the global economic climate, though potential vaccines, suggested to be available close to the end of the year or early next year, are giving rise to some general optimism.
Gold, a safe-haven popular during times of social and economic uncertainty, has seen substantial price increases since the onset of the COVID-19 pandemic with prices topping out above $2,072 in August.