PRECIOUS-Gold prices ease, Powell's speech in focus
Shafaq News/ Gold prices inched lower on Tuesday as the U.S. dollar witnessed an uptick, with traders largely focusing on Federal Reserve Chair Jerome Powell's speech for insights into the central bank's rate hike path.
* Spot gold XAU= was down 0.2% at $1,868.85 per ounce, as of 0033 GMT. U.S. gold futures GCv1 also slipped 0.2% to$1,873.10.
* The dollar index =USD firmed 0.1% after hitting a seven-month low in the previous session. A stronger dollar makes bullion expensive for other currency holders.
* The focus is on Powell's speech at a central bank conference later in the day.
* The event comes against the backdrop of Fed policymakers saying this week's inflation data will help them decide whether they can slow the pace of rate hikes at their upcoming meeting, to just a quarter point increase.
* The U.S. consumer price index (CPI) data is due on Thursday.
* Elevated interest rates dull gold's appeal as an inflation hedge and raise the opportunity cost of holding the non-yielding asset.
* Wage growth across the euro zone is expected to be "very strong" over the next few quarters but real wages are still likely to decline given rapid inflation, a European Central Bank Economic Bulletin article argued on Monday.
* SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 915.32 tonnes on Monday. GOL/ETF
* Spot silver XAG= lost 0.1% to $23.61, while platinum XPT= fell 0.1% to $1,077.32 and palladium XPD= was flat at $1,775.40.
Source: Reuters
