Gold Prices Inch Higher As Dollar Falls On Dovish Powell

Gold prices inched higher on Wednesday as the dollar eased amid Fed Chair Jerome Powell's dovish comments.

Spot gold edged up 0.2 percent to $1,782.32 an ounce, while U.S. gold futures were up 0.3 percent at $1,782.65.

The U.S. dollar fell overnight following comments from Fed Chair Jerome Powell that an interest rate hike would not happen any time soon.

The currency fell along with yields after Powell said that the Fed would be patient in waiting to tighten monetary policy.

"We will not raise interest rates pre-emptively because we fear the possible onset of inflation. We will wait for evidence of actual inflation or other imbalances," Powell said in a hearing before the House Select Subcommittee on Tuesday.

Powell's comments calmed markets after the Fed's shift in tone kept traders on the edge last week.

Investors digested mixed comments from Fed policymakers regarding scaling back of the stimulus measures.

San Francisco Fed President Mary Daly said on Tuesday that the economy is likely to meet the conditions for tapering later this year or early next year.

New York Fed President John Williams, however, argued that any discussion about a liftoff is still far away.

Earlier today, Eurozone PMIs indicated strong expansion in June, but at the same time revealed rising prices.

U.S. new home sales for May will be featured in the New York session.

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