Gold gives up record peak but remains above $2,100 ahead of Powell’s testimony

Gold prices fell today, Wednesday, but remained above the level of $2,100 per ounce, after rising bets on lowering US interest rates in June pushed the precious metal to a record level in the previous session before the testimony of Jerome Powell, Chairman of the Federal Reserve (the US central bank).

According to Reuters, the price of gold in spot transactions fell 0.2% to $2,124.46 per ounce by 0229 GMT. Gold futures in the United States fell 0.4% to $2,132.90.

Spot transactions reached a record high of $2,141.59 an ounce overnight on Tuesday, rising for the fifth consecutive session.

Growth in the US services sector slowed slightly in February amid a decline in employment and new orders for US manufactured goods fell more than expected in January.

Ten-year US Treasury bond yields hovered near their lowest levels in one month, which increases the demand for buying non-yielding bullion.

According to LSEG’s interest rate forecast app, traders see a 71% chance that the US central bank will cut interest rates in June, up from 65% on Tuesday morning.

Lower interest rates would increase the demand for buying non-yielding bullion.

Investors are focused on the first day of Powell’s semi-annual testimony before Congress on the state of the US economy.

Bitcoin, the world’s largest cryptocurrency, rose to a record high last night before falling sharply.

Data last week showed US manufacturing declined further in February, inflation gradually declined, and consumer sentiment remained weak.

As for other precious metals, platinum fell 0.1% to $879.46 per ounce, palladium fell 0.2% to $946.51, and the price of silver fell 0.4% to $23.59.