Gold prices ease off 2-month peak on firm dollar, Powell’s comments

    Gold prices edged lower on Tuesday, after hitting a more than two-month high in the previous session, as a stronger dollar and optimistic comments from U.S. Federal Reserve Chairman Jerome Powell on the economy weighed on the metal’s safe-haven appeal.

    FUNDAMENTALS

    * Spot gold was down 0.2% at $1,789.02 per ounce by 0131 GMT. The metal touched its highest since Feb.

    25 at $1,797.75 on Monday.

    * U.S. gold futures fell 0.2% to $1,788.80 per ounce.

    * The dollar index was up 0.1% against its rivals, making gold more expensive for other currency holders.

    * The U.S. economy is doing better, but is “not out of the woods yet,” Powell said on Monday in remarks that flagged an upcoming central bank study documenting the disproportionate blow suffered by the less educated and working parents during the coronavirus downturn. 

    * U.S. manufacturing activity grew at a slower pace in April, restrained by shortages of inputs as rising vaccinations against COVID-19 and massive fiscal stimulus...read more...