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U.S. dollar down 0.2%
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Silver prices rise after hitting 2-month low on Tuesday
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Platinum, palladium up over 1% each
(Adds comments, details, and updates prices)
By Kavya Guduru
Feb 8 (Reuters) - Gold prices rose on Wednesday as the
dollar pulled back from a one-month peak after comments by U.S.
Federal Reserve Chair Jerome Powell were seen as less hawkish
than expected.
Spot gold was up 0.4% at $1,880.97 per ounce, as of
0744 GMT. U.S. gold futures also rose 0.4% at $1,880.10.
The U.S. Fed may continue to raise rates or maintain
present rates to tackle inflation but probably in a less
aggressive way, said Hareesh V, head of commodity research at
Geojit Financial Services.
There were no major takeaways for gold from Fed Chair
Powell's comments as prices had already corrected due to last
week's positive economic data, Hareesh added.
Lower interest rates are seen as beneficial for gold
since they reduce the opportunity cost of holding zero-yield
bullion.
Powell said on Tuesday the latest U.S. employment report
showed the process for getting inflation back near the central
bank's 2% target will take "quite a bit of time", noting further
interest rate increases were needed.
Gold prices rose on Tuesday after the dollar retreated from
a one-month high while Powell was speaking, as most traders
seemed to agree that there were no 'hawkish surprises'.
However, "the risks of two or three rate hikes remain on the
table and that should keep gold somewhat grounded," Edward Moya,
senior market analyst at OANDA, said in a note dated Tuesday.
The dollar remained under pressure on Wednesday and was last
down 0.2%, making greenback-priced gold a more attractive bet
for buyers holding other currencies. Gold traders are tracking the performance of the dollar and
the global economic situation to get a direction while awaiting
fresh cues, Hareesh said. Elsewhere, spot silver rose 1.1% to $22.43 per
ounce, after hitting its lowest level in two months in the
previous session.
Platinum was 1.2% higher at $985.10 and palladium gained 1.3% to $1,667.36.
(Reporting by Kavya Guduru in Bengaluru; Editing by Subhranshu
Sahu and Sherry Jacob-Phillips)
