Gold tumbles amid dollar spike

Published on Mar 08, 2023 09:58

Gold stayed near one-week lows attained in the previous session after the Federal chair Jerome Powell set the table for sharp rate hikes going forward. He said that recent data had shown that inflation remained stubbornly high, and was likely to elicit more, steeper interest rate hikes. The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated," the U.S. central bank chief said in his semi-annual testimony before the Senate Banking Committee. The dollar rose sharply higher above 105 mark following the testimony although it failed to hold to previous gains on Wednesday morning. Benchmark treasury yields however, hover above 4% level. COMEX gold is currently seen trading at $1815.30, down 0.26% on the day.