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Gold sells off sharply as Biden renominates Powell for Fed chair

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(Kitco News) - Gold prices are under strong selling pressure and hit a two-week low in early U.S. dealings Monday. The yellow metal slumped as the U.S. dollar index rallied to a 15-month high when President Biden announced he has chosen current Fed Chair Jerome Powell to continue in his position for another term. Speculation had been that Biden might chose the more monetary-policy-dovish Lael Brainard as Fed chair. With Powell remaining as chairman of the Federal Reserve, traders and investors reckon U.S. monetary policy will remain on its present course, compared to notions that Brainard as a new Fed chair would have leaned easier on U.S. money policies. Sell stop orders were triggered in gold futures when prices dropped below several key near-term technical support levels, which drove prices still lower. December gold futures were last down $34.50 at $1,817.80.

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