Gold Steady in Asia, Focus on Fed Policy
Gold prices were steady in early Asian trading on Wednesday as investors continued to anticipate a rate cut by the US Federal Reserve (The Fed). Fed Chairman Jerome Powell told lawmakers that current economic data likely supports a rate cut, as long as there is no new risk of tariff hikes that could undermine efforts to control inflation.
In addition to Powell, two other Fed officials Christopher Waller and Michelle Bowman also signaled that they may support a rate cut in the near future. This statement strengthens market confidence that lower interest rates will be implemented soon, which is generally a positive factor for gold prices, because gold does not provide interest like other assets.
According to Thu Lan Nguyen, Head of Foreign Exchange and Commodity Research at Commerzbank, gold prices remain resilient as markets speculate on a US rate cut. In the last trade, spot gold prices were little changed at $3,322.98 per ounce, indicating stability amid global monetary policy uncertainty.(ayu)
Source: Newsmaker
