FUNDAMENTALS
Spot gold was slightly down at $1,726.78 per ounce by 0129 GMT. U.S. gold futures rose 0.1 % to $1,726.70 per ounce.
The dollar index rose, while Treasury yields fell after Powell told U.S lawmakers on Tuesday he expected inflation to rise over the year but it would be “neither particularly large nor persistent.”
Gold, which is priced in dollars, is often used as a hedge against rising inflation.
Treasury Secretary Janet Yellen said the U.S. economy remains at risk as she fielded lawmakers’ questions about possible infrastructure and tax increase plans under consideration.
Fed will show “resolute patience” in waiting to meet its employment and inflation goals before pulling back on support for an economy still healing from the pandemic, Fed Governor Lael Brainard said on Tuesday.
Asian stocks were poised to follow Wall Street lower, as the expense of the United States’ stimulus and infrastructure plans, as well as new pandemic precautions, constrained investors’ risk appetite.
An expansion of Japan’s factory activity gathered pace in March, a private sector survey showed on Wednesday.
SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.6% to 1,045.36 tonnes on Tuesday.
Palladium was little changed at $2,602.24 , Silver rose 0.2% to $25.13 and platinum fell 0.5%, to $1,162.13.
DATA/EVENTS (GMT)
0700 UK CPI YY Feb
0815 France Markit Mfg, Serv, Comp Flash PMI March
0830 Germany Markit Mfg, Serv, Comp Flash PMI March
0900 EU Markit Mfg, Serv, Comp Flash PMI March
0930 UK Mfg, Serv, Comp Flash PMI March
1230 US Durable Goods Feb
1345 US Markit Mfg, Serv, Comp Flash PMI March
1400 US Federal Reserve Chair Jerome Powell gives virtual testimony on coronavirus aid, relief, and the Economic Security Act before Senate Banking Committee
1500 EU Consumer Confid. Flash March
