Gold Steadies as Dollar Strengthens Ahead of Powell Testimony

(Bloomberg) — Gold traded nearly flat as the dollar strengthened ahead of testimony by Federal Reserve Chair Jerome Powell, who may provide more clues as to the future path of monetary policy.

Inflation had picked up but should move back toward the Fed’s 2% target once supply imbalances resolve, Powell said in written remarks prepared for his Tuesday testimony before the House Select Subcommittee on the Coronavirus Crisis. Investors will tune in to the hearing for potential questions that shed more light on his view on the pace of the economic rebound.

Read more: Powell Renews Forecast for Inflation Subsiding Toward Fed’s Goal

Bullion tumbled the most in 15 months last week after the Fed brought forward projected rate hikes at its most recent policy meeting. The precious metal eked out gains so far this week as the dollar wavered, helped by investors in exchange-traded funds taking advantage of the dip in prices.

“From a technical perspective, it is important for gold to exceed the 100-day moving average and to regain the $1,800 mark,” Carsten Fritsch, an analyst at Commerzbank AG, wrote in a note. “This could see it regain the trust of investors, which had been dented by the price slide.”

Spot gold was little changed at $1,785.71 an ounce at 11:55 a.m. in London, after climbing 1.1% on Monday. Prices fell 6% last week, the most since March 2020. Silver was also little changed, while platinum edged higher and palladium lower. The Bloomberg Dollar Spot Index added 0.3% after dropping 0.4% on Monday.

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Source: https://finance.yahoo.com/news/gold-holds-gain-powell-reiterates-014531773.html