Gold prices edged lower on the dollar's uptick on Wednesday as investors watched for interest rate cues from US Federal Reserve Chair Jerome Powell's congressional testimony, reports Reuters.
Spot gold was down 0.1 per cent to $1,934.29 per ounce by 1215 GMT and trading in an $8 range. US gold futures were also 0.1 per cent lower at $1,945.30.
"Appetite towards the zero-yielding metal has been hit by expectations around Powell staying hawkish and a stabilizing dollar... Powell to offer fresh clues on rate hike timings -- this could send gold tumbling below $1,932 support," said Lukman Otunuga, senior research analyst at FXTM.
The dollar edged up 0.1 per cent, making gold more expensive for holders of foreign currencies.
"Alternatively, cautious remarks from Powell may lend gold bulls some support, pushing prices back toward the $1,985 resistance," Otunuga added.
Powell was to deliver a semi-annual monetary policy testimony to the US House Financial Affairs Committee at 1400 GMT on Wednesday, with the focus being on bringing down inflation to the Fed's 2 per cent target from 4 per cent in May.
Traders are now pricing in an about 79 per cent chance of a 25 basis point Fed rate hike in July, according to CME's Fedwatch tool, with no rate cuts seen this year.
Interest rate hikes raise the opportunity cost of holding non-yielding bullion.
Gold would need to break out, either up or down, of its consolidation zone on the technical chart to obtain "short-term directional bias", DailyFX analyst Warren Venketas wrote in a note.
Spot silver fell 0.6 per cent to $23.04 per ounce, platinum was down 0.7 per cent to $955.47 while palladium shed 1.3 per cent to $1,362.16.
Gold eases in run up to Powell's testimony
FE Team | Published: June 21, 2023 23:21:59
Gold eases in run up to Powell's testimony
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