Gold prices rose in European trade on Wednesday for the first time in four days away from two-week lows as the dollar fell against a basket of major rivals.
Now traders await Fed Chair Jerome Powell’s second part of his testimony ahead of Congress later today.
The Price
Gold prices rose 0.4% today to $3337 an ounce, with a session-low at $3320.
Gold lost 1.3% on Tuesday, plumbing two-week lows at $3295 after the Iran-Israel ceasefire.
US Dollar
The dollar index fell 0.15% on Wednesday, extending losses for the third straight session against a basket of major rivals.
The dollar is hurt as haven demand plunges following the Iran-Israel ceasefire, and bearish remarks by Fed officials ahead of Congress.
Powell
Fed Chair Jerome Powell testified ahead of Congress that the Federal Reserve isn’t in a hurry to cut interest rates.
Trump continued his attacks against Powell and said he hoped Congress would take “this stubborn and stupid person” into account, adding that America will pay the price of “his stupidity” for many years to come.
Trump said there’s no inflation in the US and the economy is doing great, and asked once more for interest rates to be down by two or three percentage points, which would save the government $800 billion a year.
US Rates
Following Powell’s testimony, the odds of a Fed 0.25% rate cut in July stod at 19%.
The odds of such a cut in September rose from 82% to 87%.
SPDR
Gold holdings at the SPDR Gold Trust fell 1.72 tons yesterday to a total of 955.68 tons, away from September 2022 highs at 957.4 tons.
