Gold steadies amid firm dollar ahead of Fed speech

Tuesday,   17-Jul-2018   10:43 AM (IST)

Gold prices were steady on Tuesday, as the U.S. dollar remained largely unchanged ahead of U.S. Federal Reserve Chairman Jerome Powell’s first congressional testimony.Spot gold was up 0.1 percent at $1,241.20 an ounce, while U.S. gold futures for August delivery were up 0.1 percent at $1,241.60 an ounce.The dollar index was steady against major peers on Tuesday, as investors awaited Federal Reserve Chairman Jerome Powell’s first congressional testimony for any clues on the pace of U.S. interest rate rises.Fed’s Powell takes his upbeat view of the U.S. economy to Capitol Hill on Tuesday, with markets and many of his colleagues expecting two more interest rate increases this year amid a continued economic expansion.Higher U.S. rates tend to boost the dollar, in which the metal it is priced.Demand for gold in top consumer China has been weak as an ongoing trade war with United States had weakened the local currency and affected investor sentiment, with prospects of pick up further dented after data showed slowing growth in the economy.Escalating and sustained trade conflicts following U.S. tariff actions threaten to derail economic recovery and depress medium-term growth prospects, the International Monetary Fund warned on Monday.Silver was up about 0.2 percent at $15.76 an ounce.Platinum climbed 0.6 percent at $826.75 an ounce, while palladium rose 0.6 percent to $922.72.