Gold Prices Steady Near Record Highs; Economic Data in Spotlight
Gold prices steadied Wednesday, remaining close to recent record highs as overnight comments from U.S. Federal Reserve Chair Jerome Powell sparked heightened caution over growth, inflation, and interest rates.
At 08:45 ET (12:45 GMT), Spot gold rose 0.1% to $3,766.50 an ounce, while gold futures fell 0.4% to $3,799.75/oz.
Gold and other precious metals benefited from increased haven demand, while sustained weakness in the dollar also kept metals mostly well-bid. Anticipation of more key economic readings this week also kept markets cautious, as did weak U.S. purchasing managers index data.
Spot gold hit a record high of $3,791.1/oz on Tuesday, and remained close to the level after a strong run-up over the past week.
Fed Chair Powell on Tuesday evening flagged increased uncertainty over the U.S. economy, stating that there was no “risk-free path” towards cutting interest rates while curbing inflation and maintaining jobs growth.
While Powell did note that the labor market had weakened sharply in recent months, he also noted that inflation remained sticky, complicating the central bank’s plans to cut interest rates.
Powell’s comments came just a week after the Fed cut interest rates by 25 basis points as expected, and flagged plans to further ease policy. Gold had risen sharply after the move, given that lower rates also make non-yielding assets such as metals appear more attractive.
Source : Investing.com
