Gold heads for weekly gain on Jerome Powell's remarks

Gold prices rose in Europe on Friday, resuming gains, which were temporarily halted yesterday after positive US inflation data, to resume weekly gains on the US Federal Reserve Chairman Jerome Powell's comments before Congress that boosted market's prospects about a near US interest rate cuts more than once this year.

As of 09:05 GMT, gold prices rose by 0.3% to trade at $1,407.55 per ounce from the opening of $1,403.93 and recorded the highest at $1,412.34 and the lowest at $1,403.63.

Gold prices yesterday lost 1.1%, the first loss in three days, after better-than-expected data on key US inflation levels in June.

The data reduced the likelihood that the Federal Reserve will cut about half a percentage point in US interest rates at the next meeting by the end of this month, after a quarter-percentage point cut was agreed upon in most global financial markets.

Over the course of the week, gold so far rose by 0.6%, resuming its weekly gains streak which were temporarily halted last week for the first time in seven weeks due to correction and profit taking from the highest level in six years.

This gain is supported by more pessimistic comments by Federal Reserve Chairman Jerome Powell during his semi-annual US monetary policy testimony before the US Congress, which has raised the prospects of a cut in US interest rates for more than once this year.

Powell said before the US House of Representatives on Wednesday, that the weakness of the global economy is casting a shadow over the US economy outlook, amid a state of uncertainty over the implications of the US-led trade war with China and other countries.

Gold holdings with the SPDR Gold Trust Fund (The largest gold-backed global index) remained unchanged yesterday, with the total remaining at 800.54 mt, the highest in more than two weeks.