Bullion Waiting For Fed’s Powell To Appear Later

Gold has been trading in a narrow range during the APAC session after falling 0.5% on Monday due to higher US yields. It is currently in a holding pattern ahead of Fed Chairman Powell’s appearance later and is around $1848.15/oz having reached a high of $1850.52 following a low of $1844.15. The USD index is 0.1% lower.

• Gold is trading below its 50-day moving average. Initial resistance sits at $1858.26, while support is at $1804.90, the February 28 low, which is also the bear trigger.
• Later Fed Chairman Powell appears before the Senate banking panel. His comments will be watched closely for clarification on the monetary policy outlook but he is expected to say that the terminal rate will be higher than expected at the last meeting. This would be negative for bullion. He appears before the House on Wednesday. The data calendar is light with only US wholesale inventories and consumer credit scheduled.