Dollar fell against its peers prior Powell’s congressional testimony

The U.S. dollar inched down on Tuesday’s early trade as investors were keeping an eye on latest economic data releases. Investors are anxiously waiting for Powell’s testimony as it will strongly affect the greenback. This testimony will give an indication regarding the pace of monetary tightening.  LGT Bank’s investment strategist, Roy Teo, warned that Powell might sound positive about U.S. economic future, but it is doubtful whether it will suffice to strengthen the dollar.

The U.S. dollar index went down by 0.1 percent closing at 89.760. Still, the index managed to be 1.7 percent above a three-year low of 88.25 notched last February 16. Against its Japanese counterpart, the dollar fell by 0.1 percent to 106.86 yen. The euro rose about 0.1 percent to $1.2328.

Gold extended its gains due to the dollar’s weakness

Gold prices rose for the second session on Tuesday due to a sluggish dollar as investors await Powell’s speech to determine the pace of rate hikes this year. U.S. gold futures edged up by 0.1 percent to settle at $1,333.55 an ounce and spot gold rose by 0.1 percent at $1,331.86 per ounce. Wang Tao, a technical analyst from Reuters, said that spot gold might break resistance at $1,339.

Regarding other tradable metals, copper tumbled by 0.5 percent closing at $3.198 a pound. May Comex Silver climbed by 0.4 percent closing at $16.55 per ounce. Platinum futures for delivery in April went higher by 0.3 percent towards $1,001.8 per ounce.
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