Gold prices rebounded but continue to consolidate.
Treasury yields moved lower.
Fed Chair Powell was on the hill for his semiannual testimony.
Gold prices moved higher but remained rangebound. The dollar eased slightly as treasury yields declined. The move in the bond market came despite a hawkish Fed testimony. Since gold prices are quoted in dollars, a weaker greenback generally leads to higher gold prices.
Fed Chair Powell was on the hill on Wednesday. His remarks are part of a congressionally mandated semiannual report on monetary policy. The comments are commonly known in markets as the Humphrey Hawkins report.
A Federal Reserve Chairman, Jerome Powell, told congressional lawmakers that the central bank is determined to bring down inflation and can make that happen.
Gold prices moved higher and remained below former support, which is now resistance near the 200-day moving average at 1,843. The yellow metal support is now near the June lows at 1,805. Until there is a clear trend in the greenback, gold prices are likely to continue to consolidate.
Short-term momentum has turned positive as the fast stochastic generated a crossover sell signal.
Medium-term momentum is flat. The MACD (moving average convergence divergence) histogram has a decelerating trajectory pointing to consolidation.
This article was originally posted on FX Empire