Gold moved lower at the end of Tuesday’s trading after hitting a new record high of $2,942 as the market peaked due to the trade war triggered by the United States (US).
At 9.20 am, the price of gold was at $2,891.60, down 0.22% since it opened in early trading on Wednesday.
Market sentiment remained unchanged after Donald Trump decided to impose a 25% tax on steel and aluminum imported into the United States.
In early trading, the yellow metal rose as investors took profits ahead of Fed Chairman Jerome Powell’s testimony before the US Senate.
Jerome Powell said in his speech that the Fed was in no hurry to implement a rate cut due to the strength of the economy and inflation remaining above the 2% target.
In addition, the strong labor market stabilized the Fed’s neutral tone and it was not the main cause of inflationary pressure.
However, he denied that the US economy was in recession.
This week, the US economic docket will feature US inflation figures from the consumer and producer sides along with further remarks from Fed officials.
