Gold ticks up on subdued dollar ahead of US Fed chief's testimony
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
[BENGALURU] Gold prices edged higher on Tuesday, as a slight retreat in the dollar offered support to the safe-haven metal, ahead of US Federal Reserve Chairman Jerome Powell's testimony to Congress later in the day.
Spot gold was up 0.3 per cent at US$1,787.42 per ounce, as of 3.11am GMT, after rising more than 1 per cent in the previous session.
US gold futures gained 0.2 per cent to US$1,786.10 per ounce.
"Gold rose overnight as the US dollar retreated and that (upbeat) sentiment continues in Asia this morning, as regional investors hurry to New York's overnight lead," said Jeffrey Halley, senior market analyst at Oanda.
Making gold less expensive for holders of other currencies, the dollar index slipped from two-month high against its rivals.
All eyes are now on Mr Powell, who will appear before Congress at 6pm GMT.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
The US economy continues to show "sustained improvement" from the impact of the Covid-19 pandemic and ongoing job market gains, but inflation has "increased notably in recent months", he said in his prepared remarks.
Gold is viewed as a hedge against higher inflation that could follow stimulus measures.
The US central bank in its latest policy meeting hinted at sooner-than-expected interest rate hikes and tapering of its asset purchase programme, which sent gold prices sharply lower last week.
However, hawkish Fed officials such as St Louis Fed President James Bullard and Dallas Fed President Robert Kaplan on Monday offered a toned-down rhetoric.
"Despite the rebound, gold prices were being traded mostly within last Friday's chart pattern, a pattern that is more reflective of a pause and indecision," Avtar Sandu, a senior commodities manager at Phillip Futures, said in a note.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.3 per cent on Monday.
Elsewhere, silver eased 0.2 per cent to US$25.90 per ounce, palladium fell 0.2 per cent to US$2,579.43. Platinum climbed 0.7 per cent to US$1,060.19.
REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
