FUNDAMENTALS
* Spot gold was down 0.1% at $1,811.83 per ounce, as
of 0128 GMT, after falling more than 1% on Tuesday. U.S. gold
futures fell 0.2% to $1,816.30.
* The dollar index hit a three-month month high,
making bullion less affordable for buyers holding other
currencies.
* The Fed will likely need to raise interest rates more than
expected in response to recent strong data and is prepared to
move in larger steps if the "totality" of incoming information
suggests tougher measures are needed to control inflation,
Powell told U.S. lawmakers on Tuesday.
* Although gold is considered a hedge against inflation,
interest rate hikes to control rising prices tend to decrease
the appetite for zero-yield bullion.
* Traders of futures tied to the Fed's policy rate have
priced in a 50 basis-point rate hike at the U.S. central bank's
March 21-22 policy meeting following Powell's remarks.
* Investors are awaiting the U.S. jobs report for February
due on Friday.
* The head of Australia's central bank said on Wednesday it
was closer to pausing its aggressive cycle of rate increases as
policy was now in restrictive territory, and suggested a halt
could come as soon as April.
* Spot silver was down 0.2% at $20.01 per ounce,
platinum firmed 0.4% to $933.43 and palladium fell
0.2% to $1,384.59.
DATA/EVENTS (GMT)
0700 Germany Industrial Output MM Jan
0700 Germany Industrial Production YY Jan
1000 EU GDP Revised QQ, YY Q4
1330 US International Trade Jan
1900 US Federal Reserve issues the Beige Book
(Reporting by Kavya Guduru in Bengaluru; Editing by Subhranshu
Sahu)
