Gold retreats from morning highs as Fed speech fails to reassure markets

Gold prices soared to a one-week high earlier on Thursday but later retreated after the U.S. Federal Reserve failed to reassure markets that it would pledge to continue a round of asset purchases.

Gold futures for the December delivery on Comex fell by 1% ($19.90) to $1,932 per ounce, trimming most of its gains on Wednesday. On Thursday morning, it peaked to a $1,986.70 high, the closest it has been since August’s $2,015.

The spot price of gold was worse-hit compared to Comex, with prices dropping by 1.4% ($26.88) and trading at $1,927.33 at 01:42 PM ET (17:42 GMT). It peaked to $1,976.66 earlier on Thursday, its highest since August 19.

The yellow metal’s slump came even after Fed Chair Jerome Powell said that the bank would not attempt an “average inflation target” as it tries to mitigate relatively-high unemployment expected for at least a couple of years.