Gold gains on lower yields, traders await Powell's remarks
Gold prices edged higher in early Asian hours on Thursday, helped by a dip in US Treasury yields, while investors looked forward to comments from U.S. Federal Reserve Chair Jerome Powell for more clues on interest rates.
FUNDAMENTALS
* Spot gold was up 0.2% at $1,953.74 per ounce by 0128 GMT after hitting its lowest since Oct.
19 on Wednesday. U.S.
gold futures edged 0.1% higher to $1,959.10.
* Benchmark 10-year US Treasury yields held near their lowest in more than a month. Lower bond yields reduce the opportunity cost of holding non-interest bearing gold.
* Meanwhile, the dollar index held steady against its rivals after three sessions of gains.
* Powell did not comment on monetary policy or the economic outlook in prepared remarks at a U.S.
central bank statistics conference on Wednesday. He is scheduled to speak at another conference on Thursday.
* A slew of Fed officials who spoke this week maintained a balanced tone on the central bank's next decision, but noted they would focus on more economic data and impact of higher long-term bond yields.
* Futures point to a roughly 14% chance of another hike by January, but are pricing in an 18% chance that rate cuts could come as early as March, according to the CME FedWatch Tool.
* Lower interest rates boost the appeal of zero-yield bullion.
* The European Central Bank needs to see further progress in dampening inflationary pressures, and companies along with governments need to chip in to prevent more policy tightening, ECB policymakers said.
* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.03% to 867.28 tonnes on Wednesday.
* Spot silver fell 0.4% to $22.61 per ounce, while platinum gained 0.3% to $868.82.
