Gold Up, Powell Promises Rates Won’t Rise Too Fast By

© Reuters.

By Gina Lee – Gold was up Wednesday morning in Asia after the reassuring message from Federal Reserve Chairman Jerome Powell that interest rates will not rise too quickly based solely on fear of inflation to come. However, the strengthening of the dollar held back the gains of the yellow metal.

were up 0.26% to $ 1,782.05 at 12:29 p.m. ET (4:29 a.m. GMT). The, which generally moves inversely to gold, edged up on Wednesday.

Powell before the House of Representatives select subcommittee on Tuesday, where he reiterated the central bank’s goal of a “broad and inclusive” labor market recovery.

He also added that the Fed would not hike interest rates until this rally, with benchmark 10-year Treasury yields declining slightly in response. Investors are now awaiting the Bank of England’s political decision, which will be made on Thursday.

In Asia, the Bank of Japan (BOJ) released earlier today. The minutes say BOJ members agreed that the massive stimulus measures rolled out by some countries could help accelerate the pace of recovery in the Japanese and global economies.

Japan also released its June and purchasing managers’ index earlier today, with the former standing at 51.5 below expectations. Data suggests that the recovery of the Japanese economy is running out of steam ahead of the Tokyo Olympics, which are expected to open in July.

In other precious metals, silver edged up 0.2% and platinum 0.1%, while palladium declined 0.2%.

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