NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Gold eases as dollar recovers lost ground, investors gauge Powell testimony

Published 24/02/2021, 03:18 am
© Reuters.
XAU/USD
-
XAG/USD
-
DX
-
GC
-
SI
-
PA
-
PL
-
DXY
-

* Silver eases off three-week peak

* Platinum dips to more than 1-week low

* Palladium touches near 3-week trough (Updates prices)

By Brijesh Patel

Feb 23 (Reuters) - Gold edged lower in choppy trade on Tuesday as the dollar recovered ground lost in the immediate wake of comments from U.S. Federal Reserve Chairman Jerome Powell, who said the economic recovery was "uneven and far from complete."

Spot gold XAU= was down 0.3% at $1,803.62 an ounce by 2:10 p.m. EST (1910 GMT), after briefly moving into positive territory as the dollar dipped following Powell's comments.

U.S. gold futures GCv1 settled down 0.1% at $1,805.90.

Powell said it will be "some time" before the Fed considers changing policies it adopted to help the economy get back to full employment and he "does not expect inflation to rise to troubling levels." been a little volatility around Powell's Senate appearance but he hasn't really said anything to rock the boat," OANDA analyst Craig Erlam said.

"Despite the volatility, we haven't seen any significant directional movement in yields or the dollar, which is why gold is only marginally lower, a reflection of the dollar being a little higher."

The dollar index .DXY crawled back up 0.2%, moving away from near a six-week low, making gold more expensive for holders of other currencies. USD/ .N

But gold might not reverse course to gain substantially "until we get a real spike in inflation expectations or a Fed that talks about controlling the yield curve," said IG Market analyst Kyle Rodda. MKTS/GLOB

Rising yields have challenged bullion's appeal as an inflation hedge, since they increase the opportunity cost of holding gold. US/

Gold jumped 1.5% on Monday as prospects of rising inflation triggered equity valuation concerns and drove investors toward the safe-haven metal.

Silver XAG= dropped 2.4% to $27.49 an ounce, having earlier hit a three-week peak at $28.31.

Platinum XPT= slipped 3.3% to $1,230.54, after touching a more than one-week low earlier in the session. Palladium XPD= lost 2% to $2,349.26.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.