Gold futures end slightly higher as investors weigh Powell comments

Gold futures saw a modest climb on Monday, marking only their second gain in seven sessions. Prices traded lower for part of the session as Federal Reserve Chairman Jerome Powell said inflation is “much too high” and left the door open for more than one interest-rate hike of more than 25 basis points this year. Following Powell’s comments, “the major indices took a quick nosedive while the dollar found support and gold eased off its earlier highs, as yields soared,” said Fawad Razaqzada, market analyst at ThinkMarkets. “The Fed has already signalled a much stronger appetite to combat inflation, indicating a further 6 rate increases in 2022, but judging by Powell’s latest comments and those from some of the Fed officials, there is a good possibility that we may even see a 50 basis point increase in May.” April gold GCJ22, +0.12% edged up by 20 cents, or 0.01%, to settle at $1,929.50 an ounce.