Gold continued to climb higher after Federal Reserve (Fed) Chairman Jerome Powell’s less hawkish statement pushed the U.S. dollar further weakening.
Contrary to what was described in the minutes report of the recent FOMC meeting, the Fed was seen as less aggressive in implementing tapering after he said that a reduction in the balance sheet may not happen in the near future.
This less hawkish statement has pushed greenback dollar trading to weaker and 10 -year US bond yields declined, thus giving the precious metal gold a chance to rise.
Moreover, the decline recorded in 10 -year U.S. bond yields also supported gold trading to post profits.
Still, Powell acknowledged that the U.S. economy is preparing for higher interest rates and tightening its quantitative program to fight inflation, while testifying at the event of his re -candidacy as Fed Chairman on Tuesday.
In today's Asian session, spot gold traded steady at around $ 1,820 per ounce, while gold futures were up slightly at $ 1,819 per ounce.
Investors are now awaiting the release of US inflation data to be released in the New York session, where it is expected to show a decline in December.
