Gold price dips ahead of Fed Chair Powell's speech, still above $2,100

6 Mar 2024 , 09:57 AM

In the previous session, ahead of Federal Reserve Chair Jerome Powell’s testimony, increased expectations on a June U.S. interest rate decrease sent bullion to a new high. On Wednesday, gold prices continued to rise but remained over the $2,100 per ounce barrier.

Spot gold was down 0.2% at $2,124.46 an ounce. Gold futures in the US dropped 0.4% to $2,132.90.

Tuesday night saw a record high of $2141.59 per ounce as spot prices rose for a sixth consecutive session.

In February, the growth of the U.S. services industry slowed slightly due to a decrease in employment and a larger than anticipated loss in new orders for items manufactured in the country in January.

Comparison The yield on the 10-year U.S. Treasury was close to one-month lows, which increased the appeal of non-yielding metal.

According to LSEG’s interest rate probability software, money market pricing indicates that traders anticipate a 71% chance that the Fed will start reducing rates in June, up from 65% on Tuesday morning.

Lower rates increase the allure of bullion that never yields.

Investor attention is focused on Powell’s first day of semi-annual hearing regarding the status of the US economy before Congress.

Bitcoin, the biggest cryptocurrency in the world, too saw a record high overnight before plunging abruptly.

Statistics released last week revealed that consumer confidence remained low and that U.S. manufacturing declined even more in February.

The spot price of platinum decreased by 0.1% to $879.46 per ounce, while palladium down by 0.2% to $946.51 and silver decreased by 0.4% to $23.59.

For feedback and suggestions, write to us at [e-mail]