Fed Chair Powell's Testimony Weighs On Bullion

Gold is little changed in the Asia-Pac session. In the previous session, it experienced a slight decline of 0.2% and closed at 1932.55 following Fed Chairman Powell's semi-annual testimony to Congress.

• During his testimony, Powell reiterated the key points discussed in last week's hawkish hold. He emphasised that the decision to maintain interest rates at their current level, which marked the first time since March 2022, was a reflection of the significant progress made in a relatively short period. Powell further stated that future decisions regarding interest rates will be approached on a meeting-by-meeting basis.
• Gold has been negatively affected by the expectation of further monetary tightening from both the US Federal Reserve and the ECB, following their recent meetings.
• Additionally, the recent strengthening of the US dollar has dampened demand for gold, further impacting its performance.