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Gold Settles Higher As Dollar Eases On Renewed Rate Cut Optimism

Gold prices rose on Wednesday as the dollar lost ground after Federal Reserve Chairman Jerome Powell's testimony before the House Financial Services Committee reignited optimism about a potential rate cut by the Fed later this month.

Gold futures for August surged up $12, or about 0.9%, to $1,412.50 an ounce, the highest settlement in a week.

On Tuesday, gold futures for August edged up $0.50 to $1,400.50 an ounce, recovering from the day's low of $1,387.50.

Silver futures for September ended up $0.079, at $15.226 an ounce, while copper futures for September settled at $2.6950 per pound, gaining $0.0690 for the session.

Powell told lawmakers that crosscurrents, such as trade tensions and concerns about global growth, have continued to weigh on the U.S. economic outlook since the central bank's June meeting.

The Fed chief pointed out that increased uncertainties about the economic outlook and muted inflation pressures led the central bank to pledge after the June meeting to "act as appropriate to sustain the expansion."

Powell noted that many meeting participants saw that the case for a somewhat more accommodative monetary policy had already strengthened.

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