By Gina Lee
Investing.com – Gold was down on Thursday morning in Asia, with investors turning to the dollar after the U.S. Federal Reserve concerns about the pace of the U.S. economic recovery from the impact of COVID-19.
Gold futures were up 0.50% at $1,835.70 by 11:46 PM ET (4:46 AM GMT), with prices falling to their lowest level since Jan. 18. The dollar was up on Thursday, after hitting a more than one-week high against rival currencies during the previous session.
The Fed expressed its concerns on Wednesday as it handed down its first policy decision of 2021 and concluded a two-day policy meeting. The policy decision remained unchanged, with the central bank pledging continued support for the recovery.
Fed Chairman Jerome Powell warned that a long road towards full recovery from the impact of COVID-19 remains ahead, and that the recovery is still short of inflation and job goals. ‘The whole focus on exit is premature,” he added.
Some U.S. states have started to ease restrictive measures as the number of severe COVID-19 infections slows down in parts of the country. However, the country’s death toll continues to rise.
Although some investors downgraded their forecasts for gold, they still expect the yellow metal regains its shine and achieve record highs in 2021.