Gold began moving to a five-month low on Tuesday as the market awaits a catalyst from Federal Reserve (Fed) Chairman Jerome Powell who will testify before Congress tonight and tomorrow.
At the opening of the European session, gold spots traded at $ 1,790 per ounce, while gold futures were stable at $ 1,793 per ounce (4.00pm Malaysian time).
The precious metal previously recorded its worst month in four years after falling to a five-month low of $ 1,764 per ounce on Monday.
According to a note released Monday before Powell's statement tonight, he said the U.S. economy remained volatile despite positive developments on the Covid-19 vaccine.
U.S. Treasury Secretary Steven Mnuchin urged Congress to reuse $ 455 billion of unused funds for additional loan facilities.
Gold prices may have been supported by the statement, which also reflects the Fed's concern over the lack of support for stimulus measures from the government to support the economy affected by Covid-19.
However, market sentiment remains positive with the hope that the vaccine will be approved before the end of the year for widespread use.
