PrePowell Dollar Uptick Brings Back Gold Gloom

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SPDR Gold Trust holdings fell 0.3 on Monday

Powell testimony before Congress due at 1800 GMT Recasts, adds comment, updates prices

June 22 Reuters Gold prices edged lower on Tuesday, ceding some of the previous days 1plus gain as a dollar uptick before a speech by Fed boss Jerome Powell reduced the appeal of safehaven bullion.

Spot gold was down 0.2 at 1,778.80 per ounce by 0916 GMT, though it stayed well off the sevenweek lows hit in the wake of the U.S. Federal Reserves policy meeting last Wednesday.

U.S. gold futures slipped 0.2 to 1,778.80 per ounce.

Michael Hewson, chief market analyst at CMC Markets, said the recent gold selloff was slightly too aggressive and as markets digested the policy shift we could see some rebound over the next couple of days towards the 1,8001,820 area.

Gold prices fell 6 last week, their biggest weekly slide since March 2020, after the Fed signalled interest rates could rise in 2023. They clawed back some losses on Monday as the dollar rally paused and traders used the dip to buy. .

Higher rates and bond yields reduce the opportunity cost of holding gold, a noninterest bearing asset. The dollar index rose 0.2 on Tuesday while 10year U.S. Treasury yields also rose off the fourmonth lows touched on Monday

Powell, who will appear before Congress from 1800 GMT, in prepared remarks said inflation had increased notably in recent months.

That is keeping many pessimistic about golds prospects. Reflecting those jitters, holdings of SPDR…

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