Gold leapfrogs 1 per cent as Dollar drools after US Fed Chair Powell’s testimony

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Gold leapfrogs 1 per cent as Dollar drools after US Fed Chair Powell’s testimony

On Tuesday, the safe-haven yellow metal spot gold prices soared more than 1 per cent, as American Dollar slipped sharply after US Fed Chair Jerome Powell’s congressional hearing in Senate Banking Committee could not unmask any element of surprise in terms of a tightening of the US Central Bank’s monetary policy.

On top of that, a fallback in US Treasury bond Yields had backed up a steep upward spiral in spot gold prices further. Adding to holocaust for the American Dollar, Powell had botched to address how the US Central Bank had been planning to telescope its $9 trillion worth of assets with inflation running higher, while Powell also had quoted saying that it would be ‘a long road’ to anything close to restrictive policy, pouring fresh scorns on investors who had reaffirmed their Us Dollar ‘buy’ positions after last week’s FOMC minutes that had underscored an utterly hawkish US Fed.

Apart from that, a sharp retreat in US Treasury Yields with 10-year US Treasury bond notes having nudged from a nearly 2-year peak, added to further impetus on spot gold prices. US 10-year Treasury bond Yields were last trading at 1.76 per cent.

Gold jumps as Dollar dips after Powell testimony

Citing statistics, in the day’s commodity market wind-down, spot gold prices rocketed 1 per cent to $1,819.58 an ounce, while US gold futures’ prices torrented 1.1 per cent, settling down at $1,818.50 per ounce.

Meanwhile, addressing to a dovish Powell, a senior analyst at Kitco Metals, Jim Wychoff said, “The fact that Powell wasn't more hawkish than expected has maybe assuaged the gold market bulls a little bit”.