Gold prices were steady on Tuesday, February 27, as the dollar was little changed while investors awaited U.S. Federal Reserve Chair Jerome Powell’s first congressional testimony for clues on the future pace of monetary tightening.
Spot gold was up 0.1 percent at $1,334.26 an ounce at 0752 GMT. U.S. gold futures were up 0.2 percent at $1,335.90 per ounce.
The dollar index , which measures the greenback against a basket of major currencies, was down 0.1 percent at 89.723. The index has rebounded 1.7 percent since falling to a three-year low of 88.25 on Feb. 16.
While inflation worries could spur safe-haven gold buying, rising interest rates would pressure the metal because bullion pays no interest.
“Initial support for the metal holds around $1,325-$1,330, while resistance cuts in broadly between $1,340-$1,345,” MKS PAMP Group trader Sam Laughlin said in a note.
Spot gold is expected to break a resistance at $1,339 per ounce and rise more to the next resistance at $1,348, as suggested by its wave pattern and a projection analysis, according to Reuters technical analyst Wang Tao.
Meanwhile, global shares held firm near three-week highs on Tuesday as U.S. borrowing costs eased ahead of Powell’s awaited first congressional testimony later in the day.
SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.21 percent to 831.03 tonnes on Monday from 829.26 tonnes on Friday.
Among other precious metals, silver was down 0.2 percent at $16.63 an ounce. Palladium was flat at $1,060.70 per ounce, while platinum was down 0.1 percent at $998.40 per ounce.
