Gold steadied near a three-month high after Federal Reserve Chairman Jerome Powell signaled an openness to rate cuts and as the U.S.-China trade spate escalates.
Spot gold +0.1% to $1,326.26/oz by 9:17am in Hong Kong. Prices touched $1,329.14 on Tuesday, highest since Feb. 27.Bloomberg Dollar Spot Index +0.1%.
Powell signaled an openness to cut interest rates if necessary, pledging to keep a close watch on fallout from a deepening set of disputes between the U.S. and its largest trading partners. That follows comments from St. Louis Fed President James Bullard on Monday that a rate cut may be warranted soon. Investors have made clear they expect as much as half a percentage point of reductions from the Fed this year.
Source : Bloomberg