Gold Edges Higher on Powell Remarks

gold prices

Gold: edged up toward $1,740 an ounce on Thursday after jumping 1% in the previous session, as Federal Reserve Chair Jerome Powell said that it will likely become appropriate to slow the pace of interest rate increases depending on the inflationary and economic picture.

His less hawkish remarks weighed on the dollar and Treasury yields, while supporting bullion prices. The US central bank on Wednesday raised its policy rate by 75 basis points for the second straight month to combat surging inflation, as widely expected.

Meanwhile, the World Gold Council lowered its outlook for physical gold demand in the second half of 2022 amid slowing growth in the biggest markets, with China and India facing economic headwinds.

The WGC also warned of weakening investment demand due to aggressive global monetary tightening