Gold Edges Down as Powell Says Fed Likely to Keep Interest Rates Steady
Gold edged down early on Wednesday as the dollar rose ahead of Federal Reserve Chair Jerome Powell's second day of congressional testimony.
Gold for August delivery was last seen down US$1.30 to US$3,332.60 per ounce.
Powell will appear before the Senate Banking Committee after speaking to the House Financial Services Committee on Tuesday. The Fed chair said the central bank is still waiting to see the impact of tariffs on U.S. inflation before moving to cut rates.
"The effects of tariffs will depend, among other things, on their ultimate level. Expectations of that level, and thus of the related economic effects, reached a peak in April and have since declined. Even so, increases in tariffs this year are likely to push up prices and weigh on economic activity...For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance," Powell said in the text of his Tuesday testimony.
The dollar rose early, with the ICE dollar index last seen up 0.34 points to 98.19. Treasury yields also rose, with the U.S. two-year note last seen paying 3.809%, up 2.7 basis points, while the yield on the 10-year note was up 2.5 points to 4.321%.
Source : MT Newswires
