Gold prices edged lower on Wednesday but held above the $2,100 an ounce level, after rising bets for a June US interest rate cut propelled bullion to a record peak in the previous session, ahead of Federal Reserve Chair Jerome Powell’s testimony.
Fundamentals
Spot gold edged down 0.2% at $2,124.46 per ounce, as of 0229 GMT. US gold futures fell 0.4% to $2,132.90.
Spot prices hit a record peak of $2141.59 per ounce overnight on Tuesday, rallying for a fifth straight session.
US services industry growth slowed a bit in February amid a decline in employment and new orders for US-manufactured goods dropped more than expected in January.
Benchmark 10-year US Treasury yields hovered near one-month low levels, making non-yielding bullion more attractive.
Money market pricing shows traders see a 71% probability that the Fed would begin cutting rates in June, up from 65% on Tuesday morning, according to LSEG’s interest rate probability app.
Lower rates boost the appeal of non-yielding bullion.
Investor focus is on Powell’s first day of semi-annual testimony before Congress on the state of the US economy.
The world’s largest cryptocurrency, bitcoin, also surged to a record high overnight before retreating sharply.
Data showed last week US manufacturing slumped further in February and inflation gradually easing, while consumer sentiment stood weak.
Spot platinum fell 0.1% to $879.46 per ounce, and palladium edged 0.2% lower to $946.51, while silver dropped 0.4% to $23.59.