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Gold holding moderate gains after remarks from Fed Chairman Powell

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Live 24 hours gold chart [Kitco Inc.]

(Kitco News) - Gold prices are moderately up and did not react much to a speech by Federal Reserve Chairman Jerome Powell at the Kansas City Fed's symposium in Jackson Hole, Wyoming. The Fed chief emphasized the U.S. central bank will act as appropriate to sustain the U.S. economic expansion. He said the outlook for the U.S. economy continues to be favorable, but that global economic growth has slowed this year due to uncertainty regarding world trade. Powell said U.S. inflation appears to be moving closer to the Fed's target of around a 2% annual increase. Powell added the Fed faces a difficult task of dealing with such low interest rates in many major economies of the world. The markets showed no big reactions to Powell's remarks, although the U.S. dollar index did push to its daily high. The Fed was deemed by the marketplace to be leaning significantly easy on their monetary policy, until late this week when comments from other Fed officials at the Jackson Hole confab appeared to be walking back notions the Fed will embark on a series of interest rate cuts in the coming months. Traders hoped Powell would provide more clarity on the Fed's monetary policy intentions. December gold was last up $6.40 an ounce at $1,514.60.

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