Gold prices held above the $2,100 level on Wednesday, near a record peak hit in the previous session as hopes for US rates easing by mid-year mount, while traders awaited remarks on the economy’s health from Federal Reserve Chair Jerome Powell.
Spot gold edged down 0.1 percent at $2,126.13 per ounce. US gold futures fell 0.4 percent to $2,134.30.
Spot prices hit a record peak of $2141.59 per ounce overnight on Tuesday, rallying for a fifth straight session.
Gold’s rally is sentiment driven, which was triggered by last week’s poor US economic data that gave little more clarity for a June rate cut, said Ajay Kedia, director at Kedia Commodities, Mumbai, adding, without other factors at play, such as dollar’s movement, or any surge in geopolitical tensions, gold could see profit taking.
Traders are weighing in risks to the US economic health in a high-interest rate environment and would be tuning into Powell’s first day of semi-annual congressional testimony for more clarity on the same.
US services industry growth slowed a bit in February amid a decline in employment and new orders for US manufactured goods dropped more than expected in January.
Data on the US labor market due this week will also be closely watched for. Any downside surprise could help support gold. – Reuters
