Economy 2 MIN READ

Gold edges higher on softer dollar; hawkish Powell caps upside

March 9, 2023By Reuters

Gold prices edged higher on Thursday as the dollar eased, although US Federal Reserve Chair Jerome Powell’s hawkish remarks limited further gains in zero-yielding bullion.


* Spot gold was up 0.1% at USD 1,815.58 per ounce, as of 0046 GMT, after hitting a one-week low on Wednesday. US gold futures were unchanged at USD 1,819.10.

* The dollar index was down from three-month highs scaled on Wednesday, making bullion more affordable for buyers holding other currencies.

* Fed Chair Powell on Wednesday reaffirmed his message of higher and potentially faster interest rate hikes, but emphasized that debate was still underway with a decision hinging on data to be issued before the US central bank’s policy meeting in two weeks.

* Although gold is considered a hedge against inflation, interest rate hikes to control rising prices dims non-yielding bullion’s appeal.

* Investors’ focus will now be on the US jobs report for February due on Friday.

* Private employment increased by 242,000 jobs last month, the ADP National Employment report showed on Wednesday.

* Other data on Wednesday showed US job openings fell less than expected in January, pointing to persistently tight labor market conditions.

* Markets are pricing in a 50-basis-point hike at the Fed’s March 21-22 policy meeting.

* Spot silver was flat at USD 20.01 per ounce, platinum edged 0.1% higher at USD 938.23 and palladium firmed 0.2% to USD 1,375.47.




0130 China PPI, CPI YY Feb

1330 US Initial Jobless Clm Weekly



(Reporting by Kavya Guduru in Bengaluru; Editing by Sherry Jacob-Phillips)


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