Gold prices changed little on Tuesday as investors turned their attention to Federal Reserve (Fed) Chairman Jerome Powell’s testimony early Wednesday morning.
Spot gold traded lower around $ 1,781 an ounce at the start of the European session, having risen on Monday following a decline in 10 -year U.S. bond yields.
However, the decline did not last long, after the benchmark bond yields again displayed gains today, with the rise approaching the 1.5%level.
Jerome Powell in a written speech prepared for his testimony before the Subcommittee on the Coronavirus Crisis, said that the economy continues to show a steady improvement from the effects of the Covid-19 pandemic, with increases in the job market and inflation.
However, according to Powell, inflation should return toward the Fed's 2% target once the supply imbalance is resolved.
Investors will follow the hearing for potential questions that will provide a more in-depth explanation of their views on the pace of economic recovery and the outlook for monetary policy.
