Gold prices continue rise after hitting a 1-week high

Gold prices increase on Wednesday to resume gains after pausing yesterday, surging near a 1-week high. At the same time, the U.S. dollar dropped after Fed Chief Jerome Powell’s semi-annual testimony before the U.S. Congress.

In the previous session, the yellow metal closed lower by 0.2%, in its first daily loss on profit-taking from a 1-week high of $1,816.04 as the American currency declined. The U.S. dollar index dropped by more than 0.2% today and reached a week low of 89.94 points.

In international markets, gold boosted today after U.S. Federal Reserve Chair Jerome Powell has reiterated that the central bank would keep monetary policy accommodative as the economy still needed support. In his testimony before the U.S. Senate Banking Committee, Powell tamped down inflation worries, saying that while inflation could become volatile this year as spending recovers from the pandemic collapse, those price gains are unlikely to be large or persistent. Moreover, spot gold surged 0.2% to $1,809.17 per ounce.

Among other precious metals, silver advanced 0.4% to $27.73 an ounce. Platinum surged 1.4% and settled at $1,253.76, while palladium climbed 0.4% and hit $2,360.69.

SPDR Gold Trust’s holding fell by 0.4% to 1,110.44 tonnes

Meanwhile, gold ETFs continued to suffer outflows. Holdings at SPDR Gold Trust, the biggest gold-backed exchange-traded fund in the world, fell by 0.4% to 1,110.44 tonnes on Tuesday, the lowest level since May 14, 2020. Significantly, in the previous session, it stood at 1,115.4 tonnes,

The yellow metal prices declined in Indian markets for the second day despite positive global cues. On Multi Commodity Exchange, gold futures dropped by 0.1% and settled at Rs 46,762 per 10 gram while silver boosted by 0.21% to Rs 69,490 per kg. In the previous session, gold had gained 0.22% lower while silver dipped 1.5%.

According to Geojit, recovery upticks in gold may continue while it hold the stiff support of $1,760. Notably, major resistance stands at $1,870. An unexpected fall below $1,755 would be an early signal of major selling pressure.