Gold prices rose on Wednesday, despite a rise in the dollar, after U.S. Federal Reserve Chair Jerome Powell pledged not to raise interest rates too soon based only on the threat of inflation.
Spot gold was up 0.1% at $1,780.06 per ounce by 0103 GMT.
Gold futures in the United States remained unchanged at $1,777.60 per ounce.
Gold tends to appreciate in anticipation of low-interest rates, reducing the opportunity cost of holding non-yielding bullion.
Benchmark 10-year Treasury yields edged lower after Powell said the Fed would not raise interest rates until the economy recovers.
A White House official says Powell’s testimony before Congress shows President Biden’s economic plan is working.
Meanwhile, the dollar index increased 0.1% against its peers, making gold more expensive for non-dollar holders.
Silver rose 0.2% to $25.80 per ounce, while palladium fell 0.2% to $2,552.68. Platinum < XPT => climbed 0.1% to $1,080.63.