Investing.com – Gold prices retreated from highs as the dollar turned positive but losses were limited as data showed the yellow metal remained well supported.
for April delivery on the Comex division of the New York Mercantile Exchange rose by $2.50, or 0.18%, to $1,332.60 a troy ounce.
Hedge funds and money managers in COMEX gold contracts for the first time in four weeks, U.S. Commodity Futures Trading Commission data showed on Friday.
Gold remained well supported despite a raft of positive data on inflation and jobs in recent weeks, and ahead of the Federal Reserve chair Jerome Powell’s debut congressional testimony on Tuesday which could offer clues on monetary policy.
Also supporting the precious metal was a fall in – which move in the opposite direction to Treasury prices – as traders bet that Powell is likely to continue with the central bank’s gradual rate hike narrative.
Bank of Montreal (BMO) said Friday it doesn’t expect any material change in the official tone from the Federal Reserve as the best near-term outcome for Powell is policy continuity until there is “clear evidence” that inflation is overheating or the real economy is stumbling.
Gold benefits from a fall in bond yields which limits the opportunity cost of holding non-interest yielding assets such as bullion.
In other precious metal trade, rose 0.55% to $16.58 a troy ounce, while rose 0.33% to $1,002.10 an ounce.
fell 0.31% to $3.22, while rose 0.90% to $2.68.
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Source: Investing.com
