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Gold price sees some buying interest following Fed's Powell's testimony before Congress

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(Kitco News) - The gold market is seeing some renewed buying momentum as Federal Reseve Chair Jerome Powell strikes and cautiously optimistic tone in first day of testimony before Congress.

Tuesday, in before the House of Representatives Committee on Financial Services, Powell said that although the U.S. economy is recovering, a lot is still dependent on how the COVID-19 pandemic evolves.

“Economic activity has picked up from its depressed second-quarter level, when much of the economy was shut down to stem the spread of the virus. Many economic indicators show marked improvement,” he said in his opening statement, released ahead of the hearing.

“A full recovery is likely to come only when people are confident that it is safe to reengage in a broad range of activities. The path forward will depend on keeping the virus under control, and on policy actions taken at all levels of government,” he said.

Powell also reiterated that the U.S. central bank is committed to using all of its monetary policy tools for as long as necessary to support the global economy. However, he also did not hint at the potential for any new stimulus measures.

“Our economy will recover fully from this difficult period. We remain committed to using our full range of tools to support the economy for as long as is needed,” he said.

The gold market is seeing some modest buying momentum as investors jump into the market after Monday’s sharp selloff which pushed prices below $1,900 an ounce. December gold futures last traded at $1,920.90 an ounce, up 0.54% an ounce.

The comments come roughly a week after the Federal Reserve signaled that it expects to keep interest rates at the zero-bound range through to 2023.

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