Gold prices were a touch lower on Thursday, with some support from a weaker dollar and U.S. Treasury yields, after the Federal Reserve’s head said the central bank was fully committed to reining in inflation, and would try not to spark a recession in the process.
* Spot gold was down 0.1% at $1,835.88 per ounce by 0109 GMT. U.S. gold futures also inched 0.1% lower to $1,837.30.
* The Fed is not trying to engineer a recession to stop inflation but is fully committed to bringing prices under control even if doing so risks an economic downturn, the central bank chief Jerome Powell said on Wednesday.
* Powell is due to testify again in Washington D.C. later on Thursday.
* Gold is often viewed as a hedge against inflation and a safe store of value during economic crises, like a recession. However, the Fed hiking interest rates to fight inflation raises the opportunity cost of holding bullion, which yields no interest.
* The dollar edged down, supporting demand for greenback-priced bullion among buyers holding other currencies.
* Benchmark U.S. 10-year Treasury yields also eased, making gold more appealing.
* SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.19% to 1,071.77 tonnes on Wednesday from 1,073.80 tonnes on Tuesday.
* Spot silver dipped 0.1% to $21.38 per ounce, platinum was steady at $926.33, and palladium firmed 0.1% to $1,865.17.
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