Gold Holds Steady As Powell Reaffirms Support
Gold prices held steady on Wednesday, a day after Federal Reserve Chairman Jerome Powell assured investors the central bank was a long way from scaling back its support to the world’s largest economy.
Spot gold held steady at $1,804.92, after having hit its highest since Feb. 16 at $1,815.63 on Tuesday. U.S. gold futures were marginally lower at $1,804.20.
Powell in his testimony before the U.S. Senate Banking Committee on Tuesday pushed back on suggestions that loose monetary policy risked unleashing inflation and financial risks in what may be an emerging economic boom.
The U.S. economy was “a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved,” Powell said.
Powell will have another opportunity to address several issues such as interest rates, job losses and stimulus during his second day of testimony in Congress later today.
The dollar eased against rivals in European trade on improved risk appetite, while the 10-year U.S. Treasury yield edged back down below its recent one-year high.