Gold prices remained steady on Thursday, lingering near a four-week high in the previous session after U.S. Federal Reserve Chair Jerome Powell expressed “strong support” for economic growth, bolstering the metal’s appeal as an inflation hedge.
Spot gold was steady at $1,824.81 per ounce by 0050 GMT after hitting $1,829.55, its highest since June 16, on Wednesday.
U.S. gold futures rose 0.1% to $1,826.40 per ounce.
Powell began two days of testimony to Congress by insisting that the current price increases are temporary and that the central bank’s focus is on getting as many people back to work as possible.
Massive stimulus measures tend to support gold, which is often seen as a hedge against inflation and currency depreciation.
Producer prices in the United States surged in June, resulting in the highest annual gain in more than 10-1/2 years.
The European Central Bank needs to see higher core inflation before changing its outlook and tightening policy, ECB board member Isabel Schnabel said on Wednesday.
Silver fell 0.3% to $26.16 per ounce, palladium fell 0.8% to $2,806.78 and platinum fell 0.5% to $1,123.83.