Wed, 28 Jul 2021

Gold rises after U.S. Fed chair testimony

24 Jun 2021, 05:18 GMT+10

CHICAGO, June 23 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday as investors digested Federal Reserve Chairman Jerome Powell's testimony before the U.S. Congress on Tuesday.

The most active gold contract for August delivery rose 6 U.S. dollars, or 0.34 percent, to close at 1,783.4 dollars per ounce.

Powell testified before the U.S. Congress on Tuesday, repeating that the rising inflationary pressures are expected to be transitory, saying the Fed would be patient in waiting to lift interest rates. This is a sign that the Fed may continue its dovish stance for some time, supportive of gold.

Economic data released on Wednesday also supported gold. IHS Markit U.S. flash services purchasing managers index (PMI) fell to 64.8 in June from 70.4 in May; and IHS Markit manufacturing PMI rose to 62.6 in June from 62.1 in May, both signs of rising inflation.

U.S. current-account deficit rose by 20.7 billion dollars to 195.7 billion dollars in the first three months of this year.

U.S. new home sales fell nearly 6 percent to a seasonally adjusted annual rate of 769,000 in May.

Silver for July delivery rose 25.4 cents, or 0.98 percent, to close at 26.111 dollars per ounce. Platinum for July delivery rose 16.3 dollars, or 1.52 percent, to close at 1,086.5 dollars per ounce.

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