Gold Up, Boosted by Strong Dollar and Fed Assurances on Inflation
By Administrator_ India
Gold was up on Wednesday morning in Asia, with investors and Congress reassured by U.S. Federal Reserve Chair Jerome Powell that inflation will remain under control.
Gold futures were up 0.34% at $1,730.90 by 11:48 PM ET. The dollar, which normally moves inversely to gold, inched up to a more than two-week high on Wednesday.
U.S. Treasury yields fell after Powell told Congress on Tuesday that he expected inflation to rise over the course of the year, but it would be “neither particularly large nor persistent.” He will deliver the same remarks to a Senate committee later in the day.
The 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 added on the same day.
Treasury Secretary Janet Yellen, testifying alongside Powell at Congress, warned that the U.S. economy remains at risk as she answered questions about potential infrastructure and tax increase plans.
In other precious metals, palladium was little changed at $2,602.24, silver edged up 0.2% and platinum fell 0.5%.