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By 3 Minutes Read* Fed Chairman Powell says the economy is still ‘a long way off’ from bond tapering* In June, consumer prices in the United States increased by the greatest in 13 years*. According to HSBC, platinum is expected to be in a minor surplus this year (Recasts, adds comments and updates prices) 14 JULY (Reuters) – Gold prices soared on Wednesday as Federal Reserve Chair Jerome Powell told investors that the central bank would maintain its accommodative monetary policy despite recent inflation readings. By 10:13 a.m. EDT, spot gold had risen 0.8 percent to $1,821.40 per ounce. Gold futures in the United States rose 0.9 percent to $1,825.30. Powell said the U.S. job market is “still a ways off” from the improvement the Fed needs to see before lowering its assistance for the economy, while current high inflation will fall “in coming months” in prepared remarks before a congressional committee. “Despite the stronger inflation statistics, it really cements the view that the Fed is still on track to be pretty accommodative,” said Edward Moya, senior market analyst at OANDA. Powell’s remarks come after data showed that the consumer price index (CPI) and producer pricing index (PPI) in the United States increased last month. Recent comments by European Central Bank (ECB) officials that the central bank would not tighten too soon were also welcomed by investors. “You’ll see more dovish signals from the ECB and the People’s Bank of China (PBOC), which should provide some support to the dollar,” Moya added. “However, this is still fantastic news for the stimulus trade, which will be very favorable for gold.” A weaker dollar on Wednesday, which restored gold’s attraction to holders of other currencies, and a drop in US government yields added to bullion’s support. Palladium was up 0.1 percent to $2,829.42 an ounce, while platinum was up 2.3 percent to $1,130.01. In a note, HSBC stated that while platinum is expected to be in a minor surplus this year, prices would remain firm due to growing vehicle demand. This year, the bank predicts that the precious metal will average $1,160 per ounce. The price of silver increased by 1.2 percent to $26.26 per ounce. (Bengaluru-based reporter Nakul Iyer contributed to this report; Sandra Maler edited it.)/nRead More

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