Gold Prices Mixed Ahead Of Powell Remarks

London (Nov 28)  Gold prices were trading mixed on Wednesday, as the safe-haven appeal of the US dollar remained underpinned amid a hawkish Federal Reserve and a new threat by Washington to impose tariffs on more Chinese imports.

Spot gold rose 0.21% to USD1,213.73 per ounce after having touched its lowest level since Nov. 15 at USD1,211.36 in the previous session. US gold futures were marginally lower at USD1,219.40 per ounce.

The dollar rose broadly after Federal Reserve Vice Chair Richard Clarida reaffirmed the need for further rate hikes, but cautioned the tightening path would be data dependant.

The focus now turns to a speech by Fed Chairman Jerome Powell later in the day and the minutes from the Fed's Nov. 7-8 meeting on Thursday as investors look for additional clues on the interest rate outlook.

Higher interest rates would be bullish for the dollar but diminish the appeal of gold, which doesn't pay interest.

Investors also look ahead to the G20 summit following reports of renewed talks between the US and China on trade.

White House economic advisor Larry Kudlow said the Trump administration has restarted talks with the Chinese government "at all levels" and that the upcoming Trump-Xi meeting at the G20 summit offers an "opportunity to break through".

RTTnews

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