Gold futures were lower on Tuesday, edging below $1,400 an ounce, as investors awaited remarks by Federal Reserve Chairman Jerome Powell later this week that could offer clues about rate-cut prospects.
Gold for August delivery on Comex GCQ19, -0.44% fell $6.20, or 0.4%, to $1,393.80 an ounce, while September silver SIU19, -0.07% was down a penny, or nearly 0.1%, at $15.04 an ounce.
“Gold traders are undecided about keeping prices sustainably above $1,400, even as bullion endures its steepest moves since 2016,” said Han Tan, market analyst at FXTM, in a note. “Safe haven assets are expected to hold less appeal should the Federal Reserve step back from its easing stance.”
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Federal Reserve Chairman Jerome Powell delivered remarks on recent stress tests for banks at a conference in Boston Tuesday, but the week’s main event was expected to be his two days of testimony on the economic outlook before Congress beginning Wednesday. That’s the same day the Fed will also release the minutes from the central bank’s June meeting.
“Traders are biding time waiting for Wednesday’s FOMC minutes before stepping [on the U.S. dollar] accelerator and selling gold more aggressively,” said Stephen Innes, managing partner at Vanguard Markets, in his latest note.
Investors late last week scaled back expectations for the scope of interest-rate cuts by the Fed after a round of stronger-than-expected jobs data, but continue to see a quarter-point reduction at the end of this month as a virtual certainty.
In other metals trade, October platinum PLV19, -1.16% fell $8.30, or 1%, to $812.10 an ounce, while September palladium PAU19, -1.21% was off $14.90, or 1%, to $1,543.30 an ounce.
July copper HGN19, -1.47% was off 4.1 cents, or 1.5%, at $2.618 a pound.