Spot gold was flat at $1,806.07 per ounce, while U.S. gold futures dropped 0.2% to $1,807.20 per ounce
Gold prices were lower on Wednesday amid a strong dollar as data showed U.S. consumer prices last month increased by the most in 13 years. The focus now shifts to Federal Reserve Chair Jerome Powell’s testimony before Congress.
Spot gold was flat at $1,806.07 per ounce, as of 0057 GMT, while U.S. gold futures dropped 0.2% to $1,807.20 per ounce.
The dollar index was steady following its best daily percentage gain in nearly a month late Tuesday. A stronger dollar makes gold more expensive for other currency holders.
U.S. consumer prices increased amid supply constraints and a continued rebound in the costs of travel-related services from levels during the pandemic as the economy recovery, raising the prospect that inflationary worries are set to continue.
Market focus shifted to the Fed after the data, with the central bank’s chairman set to speak before the Congress later in the day as the market looks for any cues on rising price pressures and monetary support.
Powell has repeatedly stated that higher inflation will be transitory, noting that he expected supply chains to normalize and adapt. Treasury Secretary Janet Yellen shares that view.
The White House expects supply chain pressures that are fuelling higher inflation to abate in the not-too-distant future, but cannot say exactly when, a senior official said on Tuesday.
Rising Covid-19 infection cases, driven by the more infectious Delta variant, are forcing more countries across Europe to re-impose restrictions that could cast a pall over the region’s economic recovery prospects.
Silver was flat at $25.97, while palladium and platinum were up 0.1% at $2,830.14 and $1,105.02, respectively.