Investing.com – Gold prices edged up on Monday, rebounding from the worst week in more than two months. Federal Reserve’s new chair Jerome Powell would be giving his first speech at the Congress on Tuesday, as investors look for potential clues of future pace of U.S. monetary policies.
Gold prices fell 1.4% last week, which was its biggest decline in two and a half months. The precious metal began this week with gains, but as the U.S. dollar lost some of its momentum following recent gains, moves were tempered however ahead of Powell’s congressional testimony.
Gold futures for April delivery on the Comex division of the New York Mercantile Exchange gained $8.30, or 0.62%, to $1,338.60 a troy ounce by 12:10am ET.
The US dollar index that tracks the greenback against a basket of currencies last stood at 89.69, down 0.19%. It once broke the 90 handle last week thanks to the upbeat tone of the Fed’s January minutes published last week, but then lost its rally.
Meanwhile, the U.S. 10-year Treasury yield eased on Monay to 2.866%, continuing a slip that started last week after hitting a four-year high of 2.957% on Wednesday.
Gold is sensitive to moves in the dollar and bond yields which affect the opportunity cost of holding non-interest yielding assets such as bullion.
Asian equities rose in morning trade on Monday, extending a two-week rally. The Nikkei led the gains in the region, with a weakening yen cited as a catalyst for the buying.