scorecardresearch
Gold prices lower on Powell's inflation remarks; Spot gold reaches $1,835.88 per ounce

Gold prices lower on Powell's inflation remarks; Spot gold reaches $1,835.88 per ounce

Spot gold was down 0.1% at $1,835.88 per ounce by 0109 GMT. US gold futures also inched 0.1% lower to $1,837.30. 

Gold is often viewed as a hedge against inflation and a safe store of value during economic crises, like a recession Gold is often viewed as a hedge against inflation and a safe store of value during economic crises, like a recession

Gold prices were a touch lower on Thursday, with some support from a weaker dollar and US Treasury yields, after the Federal Reserve's head said the central bank was fully committed to reining in inflation, and would try not to spark a recession in the process. 

FUNDAMENTALS

* Spot gold was down 0.1% at $1,835.88 per ounce by 0109 GMT. US gold futures also inched 0.1% lower to $1,837.30. 

* The Fed is not trying to engineer a recession to stop inflation but is fully committed to bringing prices under control even if doing so risks an economic downturn, the central bank chief Jerome Powell said on Wednesday.

* Powell is due to testify again in Washington D.C. later on Thursday. 

* Gold is often viewed as a hedge against inflation and a safe store of value during economic crises, like a recession. However, the Fed hiking interest rates to fight inflation raises the opportunity cost of holding bullion, which yields no interest. 

* The dollar edged down, supporting demand for greenback-priced bullion among buyers holding other currencies. 

* Benchmark US 10-year Treasury yields also eased, making gold more appealing.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.19% to 1,071.77 tonnes on Wednesday from 1,073.80 tonnes on Tuesday.

* Spot silver dipped 0.1% to $21.38 per ounce, platinum was steady at $926.33, and palladium firmed 0.1% to $1,865.17.