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Gold Prices Edge Up On Softer Dollar

Gold prices traded higher for two sessions in a row on the back of a softer dollar – Gold prices traded higher for two sessions in a row on the back of a softer dollar, as investors await Federal Reserve Chairman Jerome Powell’s highly-anticipated testimony later in the day.

Gold futures for April delivery on the Comex division of the New York Mercantile Exchange rose by $1.9, or 0.14%, to $1,334.70 a troy ounce by 12:45am ET.

The US dollar index, which measures the greenback against a basket of six major currencies, slid 0.07% to 89.71, after an overnight climb from 89.44 to 89.92.

All eyes are on Jerome Powell this week as he is to make his first major appearance as head of the Federal Reserve on Tuesday.

A fall in U.S. bond yields was also cited as supportive for the precious metal’s prices, as traders bet that Powell is likely to continue with the central bank’s gradual rate hike approach.

Gold benefits from a softer dollar and the fall in bond yields, which limits the opportunity cost of holding non-interest yielding assets such as bullion.

Asian equities were mixed on Tuesday. Japan’s Nikkei gained 1.3% but Mainland Chinese markets traded in the red, with Shanghai Composite and Shenzhen Component down 1.3% and 0.8% respectively.

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