Gold prices climbed slightly during Wednesday's Asian session as the United States dollar eased, with investors remaining cautious ahead of day two of Federal Reserve Chair Jerome Powell’s testimony and fresh U.S. economic data.
By 3:45 pm AEST, spot gold rose $9.60, or 0.3%, to US$3,333.08 per ounce.
A dip in the USD/JPY pair following hawkish comments from Bank of Japan board member Naoki Tamura added pressure on the Greenback, lifting gold.
Additionally, fragile sentiment around the Israel-Iran ceasefire supported safe-haven demand.
Powell, speaking before the U.S. House Committee on Financial Services, said the Fed is likely to keep rates steady as it assesses the impact of tariffs on inflation.
“For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.”
Meanwhile, ANZ analysts commented in a note to clients: “Rising demand for haven assets has been a key driver of gold’s advance this year.
"The precious metal has also been supported by the uncertain economic backdrop created by Trump’s tariff war. Those concerns remain a focus following weak economic data.
“U.S. consumer confidence unexpectedly declined in June, underscoring lingering concerns about impacts on the economy and the job market from US import duties.”
Markets now turn attention toward upcoming U.S. housing data and Powell’s Senate testimony, while geopolitical developments in the Middle East remain on the radar.
