WASHINGTON (dpa-AFX) - Gold futures were flat Wednesday morning as traders continued to digest yesterday's testimony from new Federal Reserve Chair Jerome Powell.
Powell, speaking to Congress for the first time, said that gradual rate hikes are warranted as inflation is under control.
Analysts read Powell's statement as having a slightly hawkish bias, as the Fed Chair did not rule out four rate hikes this year.
His assessment of the economy was rosy, so the dollar rallied against major rivals, denting commodities including gold.
Gold was up $1 at $1320 an ounce after falling sharply in the previous session.
In Powell's view, the recent stock market correction will not convince the Fed to delay raising interest rates.
'At this point, we do not see these developments as weighing heavily on the outlook for economic activity, the labor market and inflation. Indeed, the economic outlook remains strong,' Powell said.
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