Gold up as investors focus on Fed’s Powell testimony

Gold prices rose today, Tuesday, after a sharp decline in the previous session, as investors awaited Federal Reserve Chairman Jerome Powell’s testimony before Congress and June inflation data to assess the next step by the US central bank.

Gold in instant transactions increased 0.1% to $2,361.77 per ounce by 02:08 GMT, after falling more than 1% yesterday, Monday. Gold futures in the United States rose 0.3% to $2,369.70.

Powell is scheduled to testify before Congress over two days, and will begin later Tuesday in the Senate before going to the House of Representatives tomorrow, Wednesday, according to Reuters.

Markets expect a 77% chance of an interest rate cut in September and another cut by December, according to CME Group’s FedWatch service.

The demand for buying gold, which does not generate interest, increases with the decline in interest rates.

Market traders are also awaiting data on consumer price indices and producer prices for June, which are scheduled to be released on Thursday and Friday, respectively.

As for other precious metals, silver rose in spot transactions 0.2% to $30.84 per ounce, platinum increased 0.9% to $1,005.25, while palladium gained 0.1% to $1,009.93.