Spot Gold pulled back from a fresh all-time high of $2,942.78 per troy ounce on Wednesday, after Federal Reserve Chair Jerome Powell’s hawkish remarks reinforced expectations of a slower pace of monetary easing this year.
Fed Chair Powell reaffirmed in the Semiannual Monetary Policy Report to the Senate committee that there was no urgency to reduce interest rates, since the central bank’s policy stance was now significantly less restrictive and the economy was faring well.
While labor market conditions have cooled from their prior overheated state, they are still solid, Powell said. And, inflation has further approached the 2% long-term target, though it was still elevated.
The official US CPI inflation report is due out later in the day.
Annual headline consumer inflation in the US probably steadied at 2.9% in January, according to market consensus.
Annual core CPI inflation probably eased to 3.1% in January.
“There is an element of profit-taking on gold following its all-time highs and ahead of the next batch of U.S. inflation data, which shapes as a possible risk event for the precious metal if core CPI happens to produce an upside beat,” Tim Waterer, chief market analyst at KCM Trade, was quoted as saying by Reuters.
Spot Gold was last edging down 0.19% to trade at $2,892.24 per troy ounce.
Gold Futures for delivery in April were losing 0.52% on the day to trade at $2,917.41 per troy ounce.
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