Investing.com – Gold prices held steady near a two-and-a-half week low on Wednesday, as the U.S. dollar remained broadly supported by expectations for several rate hikes by the Federal Reserve this year despite the release of downbeat U.S. economic growth data.
Comex were little changed at $1,319.1 a troy ounce by 08:35 a.m. ET (12:35 GMT), just off Tuesday’s two-and-a-half week lows of $1,314.40.
Markets shrugged off official data released on Wednesday showing that the U.S. economy in the fourth quarter.
The greenback was boosted after Fed Chair Jerome Powell that the U.S. central bank would likely move forward with gradual increases in interest rates.
“The economic outlook remains strong,” he said. “Further gradual increases in the federal funds rate will best promote attainment of both of our objectives.”
Powell was speaking at his first semi-annual monetary policy testimony to the House Financial Services Committee since taking over the helm of Fed earlier this month.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.19% at 90.48, the highest since January 18.
Gold is sensitive to moves in both U.S. rates and the dollar. A stronger dollar makes gold more 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 steady at $16.36 a troy ounce.
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Source: Investing.com
