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*According to Powell, tapering is still a long way off* The dollar has eased off its three-month high* Platinum has reached a one-month high (Recasts, adds comments, and updates prices) 15 JULY (Reuters) – On Thursday, gold prices rose to a one-month high as US Federal Reserve Chair Jerome Powell downplayed fears of early monetary tightening, sending the dollar and US Treasury yields lower. As of 0915 GMT, spot gold was up 0.3 percent at $1,831.70 per ounce, after reaching its highest level since June 16. Gold futures in the United States climbed 0.4 percent to $1,833.10. Powell said the US employment market is “still a ways off” from the progress the central bank needs to see before lowering its support for the economy, and that current high inflation will ease soon in a hearing before the US Congress. “The Fed will not begin tapering any time soon, and it will continue to buy bonds. As a result, we’re likely to see greater liquidity in the market, which would ultimately support gold prices “Eugen Weinberg, a Commerzbank analyst, stated. “Gold prices are now expected to consolidate around their present levels. However, we anticipate a speeding up of price rises as the year progresses.” Producer prices grew by the most in more than 10-1/2 years in June, according to key U.S. inflation indicators released this week, while consumer prices rose by the most in 13 years. In a low-interest-rate environment, non-yielding gold tends to rise, and some investors see gold as a hedge against greater inflation that could result from stimulus measures. The dollar index fell from recent highs, while 10-year US Treasury yields fell. “Gold has the potential to rise over $2,000 by the end of this year as long as the balance sheet remains in an expansionary mode and interest rates remain low,” said Hitesh Jain, lead analyst at Mumbai-based Yes Securities. Silver rose 0.3 percent to $26.31 per ounce, while platinum rose 1.1 percent to $1,141.23, its best level in over a month. Palladium prices declined 0.7% to $2,808.19 per ounce. Brijesh Patel contributed reporting from Bengaluru, and Amy Caren Daniel edited the piece./nRead More

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