Gold Awaits The Fed Chairman’s Testimony

Gold rose in Tuesday morning trading in Asia. However, a stronger dollar and higher US Treasury yields capped the yellow metal’s gains, and investors are waiting for more clues from US Federal Reserve officials about when they will start reducing asset purchases and raising interest rates.

Gold futures were also up 0.03% at $1,752.45. The dollar, which usually moves in reverse with gold, rose on Tuesday.

The US benchmark 10-year yield briefly surpassed 1.5%, a level not seen since June 2021 during the previous session. The two-year yield also rose to its highest level since March 2020.

US Treasury Secretary Janet Yellen will join Federal Reserve Chair Jerome Powell to testify at a Senate Banking Committee hearing later in the day, with the House Financial Services Committee hearing two days later. Powell said in prepared remarks that the Fed will act against uncontrolled inflation if necessary.