Gold prices as dollar declines and comments from Powell
Picture used for illustrative purpose. File
Gulf Today Report
Gold advanced on Wednesday due to weak dollar and comments by the Federal Reserve Chair Jerome Powell on the US economy still needing support.
Spot gold rose 0.2% to $1,808.15 per ounce by 05:52 GMT while US gold futures gained 0.1% to $1,808.40.
Based on Powell’s comment, gold has more breathing room, also a weak dollar supports gold prices, said Stephen Innes, chief global market strategist at Axi.
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Further supporting gold, the dollar eased against rivals, while benchmark 10-year US Treasury yield also fell.
Powell's remarks indicated that "the stimulus trade is unlikely to go away anytime in the next six months," said Michael Langford, director at corporate advisory AirGuide.
A weak US dollar and the likelihood of inflation due to stimulus measures will be key drivers for gold, added Langford.
