Gold prices hovered near one-month high on Thursday as Fed Chair Jerome Powell’s dovish comments sent the dollar and U.S. Treasury yields lower.
Spot gold held steady at $1,826.05 per ounce, after hitting its highest since June 16. U.S. gold futures were up 0.1 percent at $1,826.80.
The dollar index backed off from recent highs and 10-year U.S. Treasury yields slipped as Powell’s testimony continues in front of the Senate Committee.
Powell told the U.S. House Financial Services Committee on Wednesday that the U.S. economy is “a ways off” from where it needs to be for the Fed to tighten its easy monetary policy.
His comments came as new data showed prices paid to U.S. producers rose in June by more than expected. Earlier this week, data showed consumer prices rose by the most in 13 years.
Higher interest rates send gold lower because of increased competition from higher-yielding investments. At the same time, some investors view gold as a hedge against higher inflation.