Investing.com – Gold prices held steady near six-week highs on Tuesday, as sentiment on the greenback remained vulnerable amid ongoing concerns over the pace of future U.S. rate hikes and uncertainty regarding a potential U.S. tax overhaul.
Comex little changed at $1,295.10 a troy ounce by 08:05 a.m. ET (12:05 GMT), just off the previous session’s six-week peak of $1,299.00.
Sentiment on the greenback remained vulnerable after last week’s of the Federal Reserve’s November meeting showed that some officials were concerned inflation would stay below the bank’s 2% target for longer than expected.
Investors were also eyeing a confirmation hearing on Tuesday for Fed chair nominee Jerome Powell, with hopes he may give some clues on future policy decisions.
In remarks prepared for the hearing released on Monday, : “We expect interest rates to rise somewhat further and the size of our balance sheet to gradually shrink”.
Market participants also continued to focus on a potential U.S. tax reform plan. President Donald Trump was on Tuesday to discuss the party’s efforts to pass tax reform legislation.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.15% at 92.99, still close to Monday’s nine-week lows of 92.43.
Gold is sensitive to moves in both U.S. rates and the dollar. A weaker dollar makes gold less expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
Elsewhere on the Comex, were up 0.29% at $17.07 a troy ounce.
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Source: Investing.com
