Gold Prices Fall After Powell Opened His Mouth Yesterday!


Gold rose slightly in early Asian trade after Federal Reserve (Fed) Chairman Jerome Powell delivered a speech before the US Senate Banking Committee and stated that inflation is moving towards the 2% goal.

However, the Fed is not yet ready to implement interest rate cuts in the near future.

Meanwhile, the price of gold is now at $2,367.45 which is up by $3.25 (0.14%) since it opened in Asian trading this morning.

The yellow metal recovered slightly amid strong US Treasury bonds and the USD.

The US 10-year yield note increased one and a half basis points to 4.296% and the flow of the US Dollar Index (DXY) continued to pass the 105.00 point level, which increased by 0.14%.

Jerome Powell also emphasized that high inflation is not the only risk the Fed faces and warned that lowering interest rates too quickly would put the US economy at risk.

Although he thinks that the possibility of raising interest rates again may happen to support the latest data. But, the policy easing target remains in its mission.

Additionally, the World Gold Council (WGC) revealed that gold exchange-traded funds (ETFs) experienced inflows for a second month in June. They stated that the total fund holding was around 18 tons to 3,106 tons.

This week's US economic data is in focus for Powell's speech in the US House of Representatives on Wednesday followed by the release of consumer and producer inflation reports.

Initial Jobless Claims and University of Michigan Consumer Sentiment will also be featured in this week's economic schedule.