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U.S. dollar index down 0.1%
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Powell's testimony on Tuesday, Wednesday
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Spot gold may drop more to $1,837/oz- technicals
(Adds details, updates prices)
By Kavya Guduru
March 7 (Reuters) - Gold prices rose marginally on
Tuesday as investors awaited U.S. Federal Reserve Chair Jerome
Powell's testimony to Congress and monthly jobs data, both of
which could influence interest rate policy.
Spot gold was up 0.1% at $1,847.77 per ounce, as of
0632 GMT. U.S. gold futures eased 0.1% to $1,853.00.
Higher interest rates designed to rein in rising prices
reduce investors' appetite for non-yielding bullion.
Gold managed to climb higher as the dollar slipped, OCBC FX
strategist Christopher Wong said.
"Softer-than-expected U.S. data last week somewhat raises
the question if the solid data seen in February releases was
just a one-off seasonal or statistical quirk," he said.
Data last week showed a higher-than-expected decline of 4.5%
in U.S. durable goods in January, the largest drop since April
2020.
Data on Monday showed new orders for U.S.-manufactured goods
fell in January, pulled down by a plunge in civilian aircraft
bookings, but increases in machinery and a range of other
products suggested that manufacturing could be regaining its
footing.
The dollar index edged down 0.1%, making bullion more
affordable for buyers holding other currencies. Powell is due to deliver his semi-annual testimony before
Congress on Tuesday and Wednesday, which will be closely watched
for any hints on the U.S. central bank's tightening path.
"Gold may consolidate ahead of Powell's testimony, but as
the Fed tightening stretches into late cycle, gold can rebound
once the Fed is done - the question is on the timing," OCBC's
Wong said.
Market participants expect the Fed to raise rates by 25
basis points at its March 21 to 22 meeting, with a peak seen at
5.465% in September. The U.S. jobs report for February is due on Friday.
Gold may drop more to $1,837 per ounce, following its
failure to break a key resistance at $1,857, Reuters technical
analyst Wang Tao said.
Spot silver rose 0.1% to $21.05 per ounce, platinum fell 0.3% to $973.38 and palladium added 0.1% to
$1,441.04.
(Reporting by Kavya Guduru in Bengaluru; Editing by Sherry
Jacob-Phillips, Subhranshu Sahu and Jamie Freed)
