Gold prices moved in a tight range on Wednesday after two-straight sessions of declines, as investors refrained from making large bets ahead of U.S. Federal Reserve Chairman Jerome Powell's congressional testimony.
Spot gold held its ground at $1,936.03 per ounce by 0504 GMT. U.S. gold futures were little changed at $1,947.10.
Powell delivers a semi-annual monetary policy testimony to the U.S. House Financial Affairs Committee at 1400 GMT and market participants will be looking out for the central bank's thinking on need for further interest rate increases amid hawkish remarks from policymakers.
Two Federal Reserve policymakers and an economist nominated to join them on the Fed's Washington-based board on Tuesday said their focus is on bringing down too-high inflation so that the U.S. economy can get back to sustainable growth.
Traders are now pricing in an about 77% chance of a 25 basis point Fed rate hike in July, according to the CME Fedwatch tool. Interest-rate hikes raise the opportunity cost of holding non-yielding bullion.
Source : Reuters
