Gold hovers near 3-month peak as eyes on Powell's testimony
Shafaq News / Gold prices steadied near a three-month peak on Tuesday, supported by subdued U.S. manufacturing and construction spending, as investors awaited testimony from Federal Reserve Chair Jerome Powell and key jobs data later this week.
Spot gold was flat at $2,114.59 per ounce, as of 0423 GMT, hovering around Monday's levels of $2119.69 that marked its highest point since Dec. 4. Meanwhile, U.S. gold futures edged 0.2% lower to $2,121.60.
London's gold price benchmark hit an all-time high of $2,098.05 per troy ounce at an afternoon auction on Monday.
"This rally in gold was triggered by the softer-than-expected U.S. data and the pullback in real rates... but there has been a general bias to buy dips and a positive underlying investor sentiment towards gold that has also made the market vulnerable to the upside," UBS strategist Joni Teves said.
Data last week showed a further decline in U.S. manufacturing in February, along with a gradual easing of inflation, while consumer sentiment remained weak.
Meanwhile, Fed's Raphael Bostic said on Monday that the bank is under no pressure to cut rates urgently, highlighting a "prospering" economy and job market.
Market focus now turns to Fed Chair Powell's two-day congressional testimony on Wednesday and Thursday, in a jobs data-heavy week, as investors seek more clues on the health of the U.S. economy and potential timing of the central bank's rate cuts.
Lower interest rates boost the appeal of non-yielding bullion.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust's holdings were down 10% from the previous year as of March 4.
"Even though gold ETFs have continued to sell, the pace of the selling has been reasonably measured, which suggests these are tweaks to the composition of the investor portfolio rather than investors losing faith in gold necessarily," UBS' Teves said.
Spot platinum fell 0.7% to $890.95 per ounce, and palladium dropped over 1% to $950.13.
"Platinum should regain its luster amid the ongoing substitution of Platinum for palladium and strong auto sales," analysts at ANZ said in a note.
Spot silver fell 0.8% to $23.71.
(Reuters)
