Gold consolidates above $1,800/ounce

Gold prices rose on Wednesday, as the US dollar fell against most of its major rivals, after Federal Reserve Chairman Jerome Powell's testimony.

Data showed that the US PPI reading rose 1% last month, beating forecasts of 0.6%, and the core reading (excluding energy and food prices) rose 1%, higher than estimates of 0.5%.

Federal Reserve Chairman Jerome Powell said in a prepared statement before the US Congress that the Fed will not change its monetary policy soon and that the labor market is still far from the Fed's target, adding that inflation has surged recently, and it is expected to continue rising in the coming months.

However, Powell believes that the rise in inflation is temporary, as consumer prices rose due to the US economy reopening, and stressed the Fed's commitment to its current dovish monetary policy.

The dollar index fell against a basket of major currencies by 0.38% to 92.4 points as of 18:07 GMT, after hitting a high of 92.8 points and a low of 92.3 points.

Gold spot prices rose 0.8% to $1825.8 an ounce as of 18:40 GMT.