Gold price opens higher as market awaits Powell testimony

Gold prices rose for the third straight session on Tuesday, helped by a decline in the dollar, ahead of a nomination hearing from Federal Reserve Chairman Jerome Powell, which could be key for investors in their bets on the bull cycle. of interest rates this year.

Spot gold was up 0.3% at $ 1,805.87 an ounce at 10:40 GMT. US gold futures were up 0.4% at $ 1,806.10 an ounce.

“Declining bond yields and a weaker US dollar are pushing barrel prices above $ 1,800 this morning”said Carsten Fritsch, a commodities analyst at Commerzbank.

The yield on 10-year US Treasuries was down from a nearly two-year high and the dollar was down against its major peers.

Powell has committed to “Prevent high inflation from becoming chronic”, in remarks prepared for his nomination hearing Tuesday before the Senate Banking Committee for a new four-year term at the helm of the Fed.

Gold is seen as a hedge against high inflation, but the metal is highly sensitive to rising US interest rates, which raises the opportunity cost of holding bars, which do not generate returns.

Among other precious metals, silver was up 0.3% to $ 22.51 an ounce; while platinum traded little changed at US $ 940.03 an ounce; and palladium rose 0.9% to $ 1,929.06 an ounce.