WASHINGTON (dpa-AFX) - Gold prices rose sharply on Tuesday to hold near historic highs as investors cheered moved dovish tones from Fed Chair Jerome Powell in his speech on Monday.
Spot gold jumped 0.9 percent to $2,442.90 per ounce while U.S. gold futures were up 0.8 percent at $2,447.65.
The dollar hung around five-week lows amid U.S. rate cut optimism after Federal Reserve Chair Jerome Powell said the three inflation readings over the second quarter of this year provided policymakers greater confidence that the pace of price increases is returning to the central bank's 2 percent target.
'If you wait until inflation gets all the way down to 2 percent, you've probably waited too long,' he said.
Separately, Fed Bank of San Francisco President Mary Daly stated that inflation is cooling down, but more information is needed before making a rate decision.
The release of U.S. retail sales data for June and a speech from Fed's Adriana Kugler may sway markets later in the day.
The European Central Bank (ECB) interest rate decision is due on Thursday and economists expect the central bank to hold the main refinancing rate and the deposit facility unchanged.
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