Gold up with dollar dips ahead of Fed’s Powell speech

Gold prices rose today, Tuesday, with the decline of the dollar, as dealers await the speech of Federal Reserve Chairman (US Central Bank) Jerome Powell, scheduled later on Tuesday, for hints about raising interest rates in the future, after strong economic data last week. ,

By 0730 GMT, spot gold rose 0.4 percent to $1,874.34 an ounce, after reaching its lowest level since January 6 in the previous session. US gold futures rose 0.4 percent to $1,873.00.

According to Reuters, the dollar index fell 0.1 percent, after touching its highest level in about a month on Monday. And the weakness of the dollar makes gold priced in the US currency more attractive to buyers who hold other currencies.

Gold prices topped $1,900 an ounce in January in hopes of a slowdown in interest rate hikes by the US central bank, but prices have fallen since then.

Market participants will closely follow Powell’s speech to see if his comments indicate significant tightening after last week’s strong jobs data.

Gold is sensitive to high interest rates, which increase the opportunity cost of owning a non-returnable asset.

For other precious metals, spot silver rose 0.5 percent to $22.37 an ounce. Platinum settled at $971.63, and palladium fell 0.1 percent to $1,596.53.