The yellow gold metal struggled to post gains on Tuesday, where price movement was seen capped below $ 1,740 an ounce after a decline at the start of the Asian session.
Spot gold hovered around $ 1,739 per ounce as the European trading session began, while gold futures were positive at $ 1,738 per ounce (3.15pm Malaysian time).
Recent concerns over the slowdown of vaccination programs and new restrictions imposed in Europe, little support the price movement. Market confidence in a stronger economic recovery, however, has limited the rise in gold prices
Even Federal Reserve (Fed) Chairman Jerome Powell’s statement refraining from expressing concerns about U.S. government bond yields recently, made investors cautiously positioning on gold.
The benchmark 10 -year U.S. treasury yield slipped slightly from its more than a year -old high it reached at the end of last week, to around 1.66%.
Powell is scheduled to testify before the House Services Committee on Tuesday and the Senate Banking Committee on Wednesday, which will also be attended by Treasury Secretary Janet Yellen.
Through a draft of speech notes seen prior to Powell’s testimony tonight, he will give a hint of the U.S. economy which is seen to be improving. However, the restoration on display is still a long way to go.
