Gold Slips As Dollar Firms Up Amid Risk Aversion

Gold prices declined on Thursday and the U.S. dollar edged higher on safe-haven demand as recession worries mounted.

Spot gold dipped 0.4 percent to $1,831.37 per ounce, while U.S. gold futures were down 0.3 percent at $1,832.50.

Federal Reserve Chair Jerome Powell on Wednesday acknowledged that achieving a "soft landing" will be "very challenging" due in part to factors outside of the Fed's control and noted a recession is "certainly a possibility.

Powell also said the central bank will look for "compelling evidence" that inflation is cooling before it begins to scale back its monetary policy tightening plans.

Money markets are pricing in a 75-basis point interest rate hike in July and a half-point move in September.

Powell will testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington DC later in the day.

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