PRECIOUS-Gold eases as dollar firms and investors await Powell testimony

PRECIOUS-Gold eases as dollar firms and investors await Powell testimony

Reuters  | Feb 23, 2021 23:30

PRECIOUS-Gold eases as dollar firms and investors await Powell testimony

* Gold's trend seems to be to the downside -analyst

* U.S. 10-year yields hover near one-year high

(Updates prices)

By K. Sathya Narayanan

Feb 23 (Reuters) - Gold eased from a one-week peak on Tuesday, pressured by a firmer dollar, but held in a tight range as investors turned cautious ahead of U.S. Federal Reserve Chairman Jerome Powell's testimony to Congress later in the day.

Spot gold XAU= slipped 0.1% to $1,807.60 an ounce by 1156 GMT, trading between $1,802.80 and $1,815.63 during the session.

U.S. gold futures GCv1 eased 0.1% to $1,807.00.

Movements in gold are indicative of a "wait and see approach", said OANDA analyst Craig Erlam.

The testimony before the Senate Banking Committee on Tuesday and House of Representatives Financial Services Committee on Wednesday will be Powell's first since President Joe Biden and his fellow Democrats took control of the White House and Capitol Hill. are clearly going to be a number of questions around what (rising U.S. Treasury yields, stimulus and improved economic outlook) would mean for inflation, the Fed outlook and the risks associated with it," OANDA's Erlam said.

Bullion earlier rose to its highest since Feb. 16 at $1,815.63 as the dollar .DXY briefly touched a more than one-month low. However, the U.S. currency has since rebounded and was last up 0.1% against key rivals. USD/

Also tarnishing appeal for non-yielding bullion, benchmark U.S. Treasury yields US10YT=RR hovered near a one-year high scaled on Monday. US/

"Gold's trend seems to be to the downside, and there's no indication that it's reversing for now ... 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.

Rising yields tend to hurt bullion's appeal as an inflation hedge since they increase the opportunity cost of holding the metal.

Silver XAG= was down 0.9% at $27.92 an ounce, having earlier hit a three-week peak at $28.31. Platinum XPT= fell 1.9% to $1,248.93 while palladium XPD= lost 1.3% to $2,365.27.

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

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.

English (USA) English (UK) English (India) English (Canada) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.