Gold prices ease off 2-month peak on firm dollar, Powell’s comments

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Gold prices edged lower on Tuesday, after

hitting a more than two-month high in the previous session, as a

stronger dollar and optimistic comments from U.S. Federal

Reserve Chairman Jerome Powell on the economy weighed on the

metal’s safe-haven appeal.

FUNDAMENTALS

* Spot gold was down 0.2% at $1,789.02 per ounce by

0131 GMT. The metal touched its highest since Feb. 25 at

$1,797.75 on Monday.

* U.S. gold futures fell 0.2% to $1,788.80 per ounce.

* The dollar index was up 0.1% against its rivals,

making gold more expensive for other currency holders.

* The U.S. economy is doing better, but is “not out of the

woods yet,” Powell said on Monday in remarks that flagged an

upcoming central bank study documenting the disproportionate

blow suffered by the less educated and working parents during

the coronavirus downturn.

* U.S. manufacturing activity grew at a slower pace in

April, restrained by shortages of inputs as rising vaccinations

against COVID-19 and massive fiscal stimulus unleashed pent-up

demand.

* The Bank of Canada’s signal that it may begin hiking

interest rates before the Federal Reserve has lit a fire under

the Canadian dollar, but past tightening cycles show faster

liftoff may not be sustained.

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* South Korea’s consumer inflation accelerated to a near

four-year high in April, mainly due to a low base in 2020 and

rising oil and agricultural prices. Data from the Asian country

is a closely watched indicator as it is considered a bellwether

for global trade.

* More than 153.02 million people have been reported to be

infected by the novel coronavirus globally and 3,344,235​ have

died, according to a Reuters tally.

* Palladium rose 0.2% to $2,976.83 per ounce, after

scaling an all-time high of $3,007.73 per ounce on Friday.

* Silver was down 0.5% at $26.74 per ounce, while

platinum dipped 0.1% to $1,228.94.

DATA/EVENTS (GMT)

0430 Australia RBA Cash Rate May

0830 UK Markit/CIPS Mfg PMI Final April

1230 US International Trade March

1400 US Factory Orders MM March

(Reporting by Shreyansi Singh in Bengaluru, Editing by Sherry

Jacob-Phillips)