Gold prices hover near four-week peak on dovish Fed stance

Gold prices were flat on Thursday, hovering near a four-week high scaled in the previous session, after U.S. Federal Reserve Chair Jeremy Powell signalled “powerful support” for economic recovery and boosted the metal’s appeal as an inflation hedge.

Spot gold was steady at $1,824.81 per ounce, as of 0050 GMT, having hit a peak since June 16 on Wednesday at $1,829.55.

U.S. gold futures edged up 0.1% to $1,826.40 per ounce.

At the beginning of his two-day testimony before the Congress, Powell stuck to the view that the current price increases are transitory and that the central bank is focused on getting as many people back to work as possible.

Large stimulus measures tend to support gold, which is often considered a hedge against inflation and currency debasement.

U.S. producer prices accelerated in June, leading to the largest annual increase in more than 10-1/2 years.

The European Central Bank needs to see higher core inflation before changing its outlook and tightening policy, ECB board member Isabel Schnabel said on Wednesday.

Europe’s drug regulator said on Wednesday the Delta variant of the coronavirus will account for 90% of strains in circulation in the European Union by the end of August.

Silver fell 0.3% to $26.16 per ounce, palladium dropped 0.8% to $2,806.78, and platinum dipped 0.5% to $1,123.83.