• Gold sank to a one-year low on Thursday as the dollar powered higher after comments from U.S. Federal Reserve chairman Jerome Powell which reaffirmed expectations for more interest rate rises in the world's largest economy.
• Powell, in a closely watched two-day congressional testimony, said he believed the United States was on course for years more of steady growth, and carefully played down the risks to the U.S. economy of an escalating trade conflict.
• The Fed raised rates in June and policymakers indicated they expect two more rate increases this year.
• In late session, the yellow metals rebounded above $1,220 per ounce again, after president Donald Trump, in a rare statement for Oval Office holders, criticized the Federal Reserve for raising interest rates.
He said he's "not thrilled" with rate hikes and worries that the work the administration has done will be nullified.
• "It's a tough environment for gold," said ETF Securities associate director Anneka Gupta, adding that growth in the U.S economy and stronger corporate earnings undermined the metal.
• “Gold is not being used as a safe haven right now despite the ongoing trade war, and the stronger dollar is dominating the story amidst the rate-rising environment." Gold is generally regarded as a safe and stable store of value during times of global uncertainty.
• "Gold should find first support at yesterday's low of $1,221, with the psychological $1,200 level to follow. Resistance (is) at $1,229, with this week's high of $1,245 above that," MKS PAMP Group said in a note.
• U.S. President Donald Trump said on Wednesday the United States may hammer out a trade deal with Mexico, and then do a separate one with Canada later, sowing fresh doubts about the future of the North American Free Trade Agreement (NAFTA).
• Gold demand is likely to be healthy in the second half of 2018 on positive global economic growth, trade wars and its impact on currency and rising inflation, the World Gold Council (WGC) said in a report.
• Gold price rose by more than 4 per cent in the first few months of the year, only to finish in June down by the same amount and this downward trend continued during July as gold dropped almost an additional percentage point, WGC said in its mid-year outlook 2018 today.
While gold's volatility spiked in February and April, it has been moving in a relatively low range since, it added.
According to the council, macroeconomic trends like positive but uneven global economic growth, trade wars and their impact on currency and rising inflation and an inverted yield curve will support gold in the second half of 2018.
• Among other precious metals, silver was down 1.6 percent at $15.27 an ounce, its lowest since last July.
• Platinum was 2.2 percent lower at $795 an ounce, its lowest since 2008. Palladium fell 1.6 percent to $893 per ounce, having slipped to its lowest since August 2017 at $888.65.
Reference: Reuters, CNBC, Business-Standard
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