Gold range-bound as markets position for Powell’s testimony
Timilehin Adejumobi
1 min read
Gold traded in a narrow range on Wednesday as traders refrained from making big bets ahead of Federal Reserve Chairman Jerome Powell’s congressional testimony, which could offer further insight into the central bank’s interest-rate hike plan.
FUNDAMENTALS
Spot gold was almost unchanged at $1,936.99 per ounce by 0028 GMT. U.S. gold futures too were little changed at $1,948.20.
Powell’s congressional testimonies due on Wednesday and Thursday will be scanned for U.S. interest rate outlook.
Two Federal Reserve policymakers and an economist nominated to join them on the Fed’s Washington-based board on Tuesday said their focus is on bringing down too-high inflation so that the U.S. economy can get back to sustainable growth.
The Senate Banking committee also released prepared remarks from Fed Board nominee Adriana Kugler, who said returning inflation to the central bank’s 2% target is key to setting a strong foundation for the U.S. economy.
Gold is considered a hedge against inflation, but interest-rate hikes raise the opportunity cost of holding non-yielding bullion.
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