PRECIOUS-Gold edges up on softer dollar; investors eye Powell's comments

BY Reuters | ECONOMIC | 02/06/23 08:23 PM EST

Feb 7 (Reuters) - Gold prices edged up on Tuesday, helped by a slight pullback in the dollar, with investors eyeing Federal Reserve Chair Jerome Powell's speech later in the day to gauge the U.S. central bank's monetary policy path.


* Spot gold was 0.2% higher at $1,870.63 per ounce, as of 0046 GMT, after hitting its lowest since Jan. 6 in the previous session. U.S. gold futures rose 0.2% to $1,882.50.

* The dollar index eased 0.1%, making gold a more attractive bet for customers holding other currencies.

* Fed funds futures traders now see rates rising above 5% in May after data on Friday showed U.S. job growth accelerated sharply last month, which raised expectations that the Fed might keep interest rates higher for longer.

* Gold is sensitive to high interest rates, which lift the opportunity cost of holding non-yielding bullion.

* U.S. Treasury Secretary Janet Yellen said on Monday she saw a path for avoiding a U.S. recession, with inflation coming down significantly and the economy remaining strong, given the strength of the U.S. labour market.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.25% to 917.92 tonnes on Monday from 920.24 tonnes on Friday.

* Spot silver rose 0.1% to $22.28 per ounce, platinum edged 0.2% lower to $969.96 and palladium was little changed at $1,597.78.


0030 Australia Trade Balance G&S (A$) Dec

0330 Australia RBA Cash Rate Feb

0700 Germany Industrial Output Dec

0700 UK Halifax House Prices Jan

0745 France Reserve Assets Total Jan

1330 US International Trade $ Dec

1700 Federal Reserve Chair Jerome Powell participates in interview hosted by the Economic Club of Washington (Reporting by Kavya Guduru in Bengaluru; editing by Uttaresh.V)

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