Gold higher after Powell vowed to keep interest rates low
Gold advanced on Wednesday trade in Asia following U.S. Federal Reserve Chairman Jerome Powell reassured investors that interest rates will not rise too quickly as inflation looms larger. However, steadying dollar capped off gains for the yellow metal.
Gold futures rose 0.26% to $1,782.05 by 12:29 PM ET. The dollar, which usually moves inversely to gold, climbed on Wednesday.
Powell delivered his message in front of the House of Representatives Select Subcommittee on Tuesday, where he reaffirmed the central bank’s goal of a “broad and inclusive” recovery of the job market.
The Fed chair furthered that the central bank would not increase interest rates before this recovery, with benchmark 10-year Treasury yields dipping in response. Investors now await the Bank of England’s policy decision, which will be announced on Thursday.
In other precious metals, silver gained 0.2% and platinum climbed 0.1%. Palladium dropped 0.2%.