WASHINGTON (dpa-AFX) - Gold prices held steady on Wednesday after suffering heavy losses in the prior session as the fragile Iran-Israel truce took hold.
Spot gold was little changed at $3,322.29 per ounce in European trade, after having fallen 2 percent to hit a more than two-week low on Tuesday. U.S. gold futures were up 0.1 percent at $3,336.70.
The U.S. dollar struggled to regain lost ground, helping bullion recover some ground.
U.S. Treasury yields held steady amid the easing in Middle East tensions and comments from Federal Reserve Chair Jerome Powell that 'many paths are possible' for monetary policy.
Testifying before the House Financial Services Committee on Tuesday, Powell said that rate cuts can wait until the economic effects of tariff increases are better known.
At the same time, he hinted that lower inflation and weaker labor hiring could lead to an earlier rate cut, prompting traders to price in two Fed cuts by the end of 2025, with a first move in September far more likely than next month.
Separately, Fed Bank of Minneapolis President Neel Kashkari said that recent inflation data has been 'quite positive', but the central bank is taking time to assess how tariffs will impact prices.
His New York counterpart John Williams said he sees slower growth and higher inflation this year due in large part to trade tariffs.
Fed Governor Michael Barr said he supports a wait-and-see approach on rates. Fed Bank of Cleveland chief Beth Hammack said policy may stay on hold for some time. Boston Fed President Susan M. Collins said the modestly restrictive stance is necessary.
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