Gold Rises Thanks to Weak Dollar Before Powell’s Testimony

Gold rose today as the bullish trend of the US dollar stalled, which increased the attractiveness of the yellow metal ahead of Federal Reserve Chairman Jerome Powell’s testimony before Congress.

Spot gold rose 0.3% to $1,787.80 an ounce), after rising 1% in the previous session.

And the yellow metal rose in futures trading in the United States 0.3% to 1787.70 dollars.

The dollar index fell from a two-month peak against its rivals, lowering the cost of gold to holders of other currencies.

All eyes are now on Powell’s testimony before Congress, scheduled for 1800 GMT.

In his prepared comments, Powell says that the US economy is still showing “sustainable improvement” from the effects of Covid-19 and current gains in the labor market, but inflation “has increased significantly in recent months.”

Gold is considered a hedge against inflation that may follow stimulus measures.

In terms of other precious metals, silver rose 0.1% to $ 25.97 an ounce, palladium fell 0.1% to $ 2583.24, and platinum rose 0.9% to $ 1063.13.