In this framework, the dollar index fell on the day, but remained close to two-decade highs, hurting appetite for gold among foreign buyers, while the yield on 10-year notes was also trading firm.
“With the dollar at 20-year highs and 10-year bonds above 3%, gold is in serious headwinds,” said independent analyst Ross Norman.
The US economy will need tight monetary policy “for some time” before inflation is brought under control, which will mean slower growth, a weaker job market and “some pain” for households and businesses, the chairman said. US central bank, while warning that there is no quick cure for soaring prices.
“Reducing inflation is likely to require a sustained period of below-trend growth. In addition, labor market conditions are very likely to weaken. While higher interest rates, slower growth and weaker labor market conditions will reduce inflation, they will also cause some pain for households and businessesPowell said in remarks prepared for his speech at the central banking conference in Jackson Hole, Wyoming.
In other precious metals, the silver cash yielded 1.8%, at $18.77 an ounce, but was headed for a weekly gain; the platinum fell 2.4% to $852.80; yePalladium fell 1.7% to $2,103.52.
Source: Ambito
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