Gold futures on the COMEX division of the New York Mercantile Exchange were almost unchanged on Wednesday after a more-than-one-percent plunge in the previous session in response to new Fed chairman's pledge for gradual interest hikes.
The most active gold contract for April delivery fell only 70 cents, or 0.05 percent, to settle at 1317.90 dollars per ounce.
U.S. Federal Reserve Chairman Jerome Powell told U.S. lawmakers on Tuesday that the central bank would continue to gradually raise interest rates. His remarks on rate hikes and inflation were deemed a continuation of his predecessor' s approach of "cautious hawkishness" , which strengthened the dollar and pressured the gold prices.
The U.S. dollar index, a gauge of the greenback against a basket of other major currencies, rose 0.25 percent to 90.59 as of 1809 GMT on Wednesday.
Gold and the dollar usually move in opposite directions. If the dollar goes up, gold futures will fall as gold, measured in U.S. dollar, becomes less attractive to investors using weak currencies.
Meanwhile, latest data show that U.S. gross domestic product climbed by 2.5 percent in the fourth quarter of 2017, against an estimated 2.6 percent increase. The Chicago PMI fell to six-month low in February and pending home sales also came subdued.
All the market indicators, however, have left observers skeptical about Powell's version of three or even four rate hikes in 2018, thus curbed the fall of gold.
As for other precious metals, silver for May delivery fell 2.7 cents, or 0.16 percent, to settle at 16.407 dollars per ounce. Platinum for April went up 3.5 dollars, or 0.36 percent, to close at 988.10 dollars per ounce.
The most active gold contract for April delivery fell only 70 cents, or 0.05 percent, to settle at 1317.90 dollars per ounce.
U.S. Federal Reserve Chairman Jerome Powell told U.S. lawmakers on Tuesday that the central bank would continue to gradually raise interest rates. His remarks on rate hikes and inflation were deemed a continuation of his predecessor' s approach of "cautious hawkishness" , which strengthened the dollar and pressured the gold prices.
The U.S. dollar index, a gauge of the greenback against a basket of other major currencies, rose 0.25 percent to 90.59 as of 1809 GMT on Wednesday.
Gold and the dollar usually move in opposite directions. If the dollar goes up, gold futures will fall as gold, measured in U.S. dollar, becomes less attractive to investors using weak currencies.
Meanwhile, latest data show that U.S. gross domestic product climbed by 2.5 percent in the fourth quarter of 2017, against an estimated 2.6 percent increase. The Chicago PMI fell to six-month low in February and pending home sales also came subdued.
All the market indicators, however, have left observers skeptical about Powell's version of three or even four rate hikes in 2018, thus curbed the fall of gold.
As for other precious metals, silver for May delivery fell 2.7 cents, or 0.16 percent, to settle at 16.407 dollars per ounce. Platinum for April went up 3.5 dollars, or 0.36 percent, to close at 988.10 dollars per ounce.
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