Gold holds ground ahead of testimony by Fed’s Powell

LONDON, Feb 27 (Reuters): Gold prices held their ground on Tuesday as nervous investors awaited testimony from the new chair of the US central bank, but an analyst warned bullion was vulnerable to profit taking.

Spot gold was unchanged at $1,333.15 an ounce at 0950 GMT.

US gold futures added 0.2 per cent to $1,335 per ounce. New Federal Reserve chief Jerome Powell is expected to take a neutral line in his testimony to the US Congress, but if he aligns with the current FOMC consensus of three rate increases this year, that is more tightening than is priced in by markets.

The dollar index fell before Powell's testimony, due at 1500 GMT.