WASHINGTON (dpa-AFX) - Gold scaled a new record high on Thursday while the dollar was on the backfoot after Federal Reserve Chair Jerome Powell signaled in testimony to a House of Representatives that the U.S. central bank is on track to cut interest rates 'at some point this year'.
Spot gold edged up 0.4 percent to $2,157.44 per ounce, on track to notch a seventh straight gain. U.S. gold futures were up 0.3 percent at $2,164.65.
The dollar index traded lower for the fifth straight session, hitting a five-week trough against a basket of major rivals as U.S.10-year treasury yields dipped to a month low.
In testimony to a House of Representatives, Powell on Wednesday described the U.S. economic outlook as 'uncertain' and noted that bringing down inflation was 'not assured.'
He further stressed that future interest rate decisions will be based on careful assessment of the incoming data, the evolving outlook, and the balance of risks.
Investors now look ahead to the ECB's monetary policy announcement and Fed Chair Jerome Powell's second day of testimony on Capitol Hill later in the day.
The European Central Bank (ECB) will likely hold rates at record highs and could announce baby steps towards cutting them in the coming months depending on the evolving inflation and growth outlook.
During his second day of testimony before the Senate Banking Committee, Powell is expected to double down on his message that there's no rush to cut interest rates.
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