Gold eases as dollar surges on Jerome Powell’s reassurance on inflation

(Reuters) – eased on Wednesday, as the dollar touched a more than two-week high after U.S. Federal Reserve Chair reassured Congress that would not spiral out of control.


* Spot gold was slightly down at $1,726.78 per ounce by 0129 GMT. U.S. gold futures rose 0.1 % to $1,726.70 per ounce.

* The dollar index rose, while Treasury yields fell after Powell told U.S lawmakers on Tuesday he expected to rise over the year but it would be “neither particularly large nor persistent.”

* Gold, which is priced in dollars, is often used as a hedge against rising

* Treasury Secretary Janet Yellen said the U.S. economy remains at risk as she fielded lawmakers’ questions about possible infrastructure and tax increase plans under consideration.

* Fed will show “resolute patience” in waiting to meet its employment and inflation goals before pulling back on support for an economy still healing from the pandemic, Fed Governor Lael Brainard said on Tuesday.

* Asian stocks were poised to follow Wall Street lower, as the expense of the United States’ stimulus and infrastructure plans, as well as new pandemic precautions, constrained investors’ risk appetite.

* An expansion of Japan’s factory activity gathered pace in March, a private sector survey showed on Wednesday.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.6% to 1,045.36 tonnes on Tuesday.

* Palladium was little changed at $2,602.24 , Silver rose 0.2% to $25.13 and platinum fell 0.5%, to $1,162.13.


(Reporting by Diptendu Lahiri in Bengaluru; Editing by Rashmi Aich)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link