Gold falls ahead of Jerome Powell’s testimony.
Gold under bearish pressure on stronger dollar as the as investors turn their attention to U.S. Fed chief Jerome Powell’s testimony for cues on monetary policy. Today’s bearish tone continues the earlier sharp downward impulse in the wake of Fed’s surprise hawkish signal last Wednesday. Higher rates and bond yields reduce the opportunity cost of holding gold, a non-interest bearing asset. Powell, who will appear before Congress from 1800 GMT, in prepared remarks said inflation had “increased notably in recent months”. The boost in Fed growth and inflation forecasts, and improved labor market projections, could drive gold prices further down.
Next support to watch – 1760.00