March 24 (Reuters) - Gold prices eased on Wednesday, as the
dollar touched a more than two-week high after U.S. Federal
Reserve Chair Jerome Powell reassured Congress that inflation
would not spiral out of control.
FUNDAMENTALS
* Spot gold XAU= was slightly down at $1,726.78 per ounce
by 0129 GMT. U.S. gold futures GCv1 rose 0.1 % to $1,726.70
per ounce.
* The dollar index rose, while Treasury yields fell after
Powell told U.S lawmakers on Tuesday he expected inflation to
rise over the year but it would be "neither particularly large
nor persistent." USD/ US/ * Gold, which is priced in dollars, is often used as a hedge
against rising inflation.
* Treasury Secretary Janet Yellen said the U.S. economy
remains at risk as she fielded lawmakers' questions about
possible infrastructure and tax increase plans under
consideration. * Fed will show "resolute patience" in waiting to meet its
employment and inflation goals before pulling back on support
for an economy still healing from the pandemic, Fed Governor
Lael Brainard said on Tuesday. * Asian stocks were poised to follow Wall Street lower, as
the expense of the United States' stimulus and infrastructure
plans, as well as new pandemic precautions, constrained
investors' risk appetite. MKTS/GLOB
* An expansion of Japan's factory activity gathered pace in
March, a private sector survey showed on Wednesday. * SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.6% to 1,045.36
tonnes on Tuesday. GOL/ETF
* Palladium XPD= was little changed at $2,602.24 , Silver
XAG= rose 0.2% to $25.13 and platinum XPT= fell 0.5%, to
$1,162.13.
DATA/EVENTS (GMT)
0700 UK CPI YY Feb
0815 France Markit Mfg, Serv, Comp Flash PMI March
0830 Germany Markit Mfg, Serv, Comp Flash PMI March
0900 EU Markit Mfg, Serv, Comp Flash PMI March
0930 UK Mfg, Serv, Comp Flash PMI March
1230 US Durable Goods Feb
1345 US Markit Mfg, Serv, Comp Flash PMI March
1400 US Federal Reserve Chair Jerome Powell gives
virtual testimony on coronavirus aid, relief,
and the Economic Security Act before Senate
Banking Committee
1500 EU Consumer Confid. Flash March