FUNDAMENTALS
Spot gold was up 0.2% at $1,819.71 per ounce, as of 0046 GMT. Earlier in the session, bullion hit a peak since Aug. 4 at $1,820.50.
US gold futures were up 0.2% at $1,823.10.
On Friday, Powell offered no signal on when the central bank plans to cut its asset purchases beyond saying it could be “this year” and indicated it will remain cautious in any eventual decision to raise interest rates.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Powell’s statement pushed the index to a two-week trough, bolstering the bullion’s appeal for those holding other currencies.
Data on Friday showed US consumer spending slowed in July, while fears about the COVID-19 Delta variant knocked consumer sentiment to a more than 9-1/2-year low in August.
Physical gold demand in India was subdued last week as jewellers held off purchases, hoping for a dip in prices, but top consumer China saw a slight uptick in activity.
Sales of gold bracelets, pendants, earrings and necklaces that draw on traditional Chinese symbols are flying among young consumers, helping drive a rebound in gold demand in China after a pandemic-induced slump.
Speculators raised their net long positions in COMEX gold and silver in the week ended Aug. 24, data from the US Commodity Futures Trading Commission showed.
Silver rose 0.3% to $24.07 per ounce, while
climbed 0.7% to $1,015.08.
Palladium was 0.5% higher at $2,430.23.
