March 24 (Reuters) - Gold prices eased on Wednesday, as the dollar touched a more than two-week high after U.S. Federal Reserve Chair Jerome Powell reassured Congress that inflation would not spiral out of control.
FUNDAMENTALS
* Spot gold XAU= was slightly down at $1,726.78 per ounce by 0129 GMT. U.S. gold futures GCv1 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 inflation to rise over the year but it would be "neither particularly large nor persistent." USD/ US/ Gold, which is priced in dollars, is often used as a hedge against rising inflation.
* 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. MKTS/GLOB
* An expansion of Japan's factory activity gathered pace in March, a private sector survey showed on Wednesday. SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.6% to 1,045.36 tonnes on Tuesday. GOL/ETF
* Palladium XPD= was little changed at $2,602.24 , Silver XAG= rose 0.2% to $25.13 and platinum XPT= fell 0.5%, to $1,162.13.
DATA/EVENTS (GMT)
0700 UK
CPI YY
Feb
0815 France Markit Mfg, Serv, Comp Flash PMI
March
0830 Germany Markit Mfg, Serv, Comp Flash PMI
March
0900 EU
Markit Mfg, Serv, Comp Flash PMI
March
0930 UK
Mfg, Serv, Comp Flash PMI
March
1230 US
Durable Goods
Feb
1345 US
Markit Mfg, Serv, Comp Flash PMI
March
1400 US
Federal Reserve Chair Jerome Powell gives
virtual testimony on coronavirus aid, relief,
and the Economic Security Act before Senate
Banking Committee
1500 EU
Consumer Confid. Flash
March