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Gold Prices Hover near FourWeek High on Dovish Fed Stance

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Spot gold may test resistance at 1,833oz technicals

Gold likely to see gradual trend higher for the year analyst 

July 15 Reuters Gold prices hovered near a fourweek peak on Thursday after U.S. Federal Reserve Chair Jeremy Powell soothed investor fears by reassuring that he was in no rush to tighten policy, lifting the metals appeal as an inflation hedge.

Spot gold was flat at 1,826.27 per ounce, as of 0443 GMT, having hit a peak since June 16 at 1,829.55 on Wednesday.

U.S. gold futures edged up 0.1 to 1,827.00.

Powell stuck to the view on Wednesday that the current price increases are transitory and the Fed expects to continue its bondbuying until there is substantial further progress on jobs, with interest rates pinned near zero likely until at least 2023.

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

Growing inflationary pressures are going to keep investors on edge, but they are becoming more comfortable about the Feds stance, allowing them to continue to build positions in the market, ANZ analyst Daniel Hynes said.

The conditions are relatively supportive of further gains in gold … Its not going to be a sprint but a very gentle, gradual trend higher for the year at the moment, Hynes added.

Weighing on bullions appeal, the dollar found some footing during the Asian trade on the back of coronavirus jitters, after Powells comments caused the greenback to retreat from recent…

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