Gold resumes decline from one-month high after Powell's Congress testimony

Gold futures fell in American trade away from January 25 highs for the sixth session out of eight, as the dollar index rebounded for the seventh session out of eight from December 17, 2014 lows, following earlier data from the US, while Fed Chair Jerome Powell testified before the House of Representatives earlier today. 

As of 03:15 GMT, gold futures due on April 15 fell 0.53% to $1,325.70 an ounce from the opening of $1,332.80, while the dollar index rose 0.34% to 90.16 from the opening of 89.85, marking a two-week high. 

Fed Chair Jerome Powell did the first half of his testimony before the House of Representatives earlier today, with the second half expected on Thursday before the Senate Banking Committee.  

Powell expressed admiration for former Chair Janet Yellen's work to strengthen the economy and normalize the balance sheet, lauding her for helping to smooth out the transition and provide continuity in monetary policy. 

Powell expected the Fed to continue tightening monetary policy gradually, while pointing to economic outlook as strong, asserting the importance of balancing the push of inflation just towards the target and not beyond it, adding that labor strength will underpin spending and income. 

Earlier US data showed durable goods orders fell 3.7% in January, compared to a 2.8% rise in December, and missing expectations of a 2.4% drop, while core orders also fell 0.3%, compared to a 0.7% rise in December and missing forecasts of 0.4% rise. 

The goods trade deficit widened while wholesale inventories rose past expectations in January, as the House Price index slowed more than expected in December. 

The Richmond Manufacturing Index rose to 28 in February from 14 in January, beating expectations of 15, while the CB consumer confidence survey rose to 130.8 in February from 124.3 in January, beating forecasts of 126.2. 

Gold holdings at SPDR Gold Trust, the world's largest gold-backed investment fund, rose 1.77 tonnes yesterday to a total of 831.03 tonnes, the highest since January 31, after rising about 3%, or 23.63 tonnes in 2017.