by 2 minutes Read* Spot gold may hit $1,833/oz resistance – technicals* Gold is expected to rise steadily throughout the year, according to analysts. (Updates prices and adds details) 15 JULY (Reuters) – On Thursday, gold prices were hovering near a four-week high after US Federal Reserve Chair Jeremy Powell reassured investors that he was not in a rush to tighten policy, boosting the metal’s appeal as an inflation hedge. As of 0443 GMT, spot gold was unchanged at $1,826.27 per ounce, after hitting a high of $1,829.55 on Wednesday, the highest since June 16. Gold futures in the United States rose 0.1 percent to $1,827.00. On Wednesday, Powell reiterated his belief that current price gains are temporary, and that the Fed will continue to buy bonds until there is “significant more progress” on job creation, with interest rates expected to remain around zero until at least 2023. Gold, which is typically seen as a hedge against inflation and currency debasement, tends to benefit from large stimulus measures. Investors will be on edge as inflationary pressures rise, but they are gaining more confident in the Fed’s attitude, allowing them to continue to build positions in the market, according to ANZ analyst Daniel Hynes. “The circumstances are favorable for additional gains (in gold)… At the moment, it’s not going to be a sprint, but rather a very slow, progressive trend higher throughout the year “Hynes went on to say. The dollar found some foothold during Asian trade on the back of coronavirus fears, weighing on bullion’s appeal after Powell’s comments forced the greenback to fall from recent peaks. According to Reuters technical expert Wang Tao, spot gold may test a resistance level of $1,833 per ounce, with a break above leading to a gain of $1,853. Silver rose 0.1 percent to $26.26 per ounce, among other precious metals. Palladium slid 0.7 percent to $2,809.69 per ounce, after climbing to its highest level since June 16 in the previous session. Platinum was unchanged at $1,128.99 per ounce. Eileen Soreng contributed reporting from Bengaluru, while Sherry Jacob-Phillips and Vinay Dwivedi edited the piece./n
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