BENGALURU- Gold prices slipped on Wednesday after rising to an all-time high in the previous session, as Federal Reserve Chair Jerome Powell’s hawkish comment cemented views of slower rate cuts this year, while investors awaited a key US inflation report.
Spot gold fell 0.1 percent to $2,895.38 per ounce after climbing to a record high of $2,942.70 on Tuesday. US gold futures eased 0.4 percent to $2,922.40.
Powell said on Tuesday the economy is in a good place and the Fed isn’t rushing to cut interest rates further, but is prepared to do it if inflation drops or the job market weakens.
Bullion is considered a hedge against inflation, but higher interest rates dampen the non-yielding asset’s appeal.
“There is an element of profit-taking on gold following its all-time highs and ahead of the next batch of US inflation data, which shapes as a possible risk event for the precious metal if core CPI happens to produce an upside beat,” said Tim Waterer, chief market analyst at KCM Trade.
The US Consumer Price Index (CPI) report is due at 1330 GMT later in the day and the Producer Price Index (PPI) data is scheduled to be out on Thursday. Powell is also due to testify before Congress later in the day.
Mexico, Canada and the European Union on Tuesday condemned US President Donald Trump’s decision to impose tariffs on all steel and aluminum imports next month, which has fanned fears of a major global trade war as investors brace for more trade duty announcements.
