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.


FUNDAMENTALS



* 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.)

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