Gold prices flat as investors await US Fed chair Powell’s speech

GOLD prices steadied on Wednesday (Nov 8) as a retreat in US bond yields offset pressure from a stronger US dollar, while investors sought more clarity on interest rates from the US Federal Reserve after mixed commentary from the central bank officials.

Spot gold was flat at US$1,968.64 per ounce by 0126 GMT after hitting its lowest since Oct 24 on Tuesday. US gold futures edged 0.1 per cent higher to US$1,975.20.

The US dollar rose for a third straight session, up 0.1 per cent against its rivals, making gold more expensive for other currency holders.

While benchmark 10-year US Treasury yields were hovering near a five-week low touched last week.

Chicago Fed president Austan Goolsbee said the US central bank has made significant inroads in its battle to bring inflation down to its 2 per cent target, and attention will turn to how long to keep rates at their current level if that progress continues.

Minneapolis Fed Bank president Neel Kashkari said the US central bank may have to do more to bring inflation down to its 2 per cent goal, given the recent spate of resilient economic data.

Fed governor Michelle Bowman, on the other hand, repeated her view that the central bank will likely need to raise short-term rates again.

Investors now look forward to comments from Fed chair Jerome Powell, who is set to speak on Wednesday and Thursday.

Futures point to a roughly 15 per cent chance of another hike by January, but are pricing in a 22 per cent chance that rate cuts could come as early as March, according to the CME FedWatch tool.

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Spot silver fell 0.3 per cent to US$22.56 per ounce, platinum eased 0.3 per cent to US$888.60. Palladium was steady at US$1,055.49, hovering near its lowest level since 2018. REUTERS