Gold reversed course to jump nearly 1% on Wednesday after Federal Reserve Chairman Jerome Powell highlighted risks to the U.S. economy and bolstered expectations of an interest rate cut later this month.
Powell will present his remarks and take questions from members of the U.S. House of Representatives Financial Services Committee beginning at 10 a.m. EDT (1400 GMT), and will testify again on Thursday before the Senate Banking Committee.
Spot gold was up 0.8% to $1,409.36 per ounce at 1303 GMT, reversing a decline earlier in the session.
U.S. gold futures were up 0.8% to $1,411.3 per ounce.
Meanwhile, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.22% to 794.08 tonnes on Tuesday from 795.80 tonnes on Monday.