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Gold prices traded modestly higher on Tuesday as the yellow metal continued to recoup some of what it lost in the sharp fall after the January U.S. employment report was published Friday.
Price action
-
Gold for April
GC00,
+0.49% GCJ23,
+0.49%
delivery rose $2.80, or nearly 0.2%, to $1,882.30 per ounce on Comex. -
Silver for March delivery
SI00,
+0.46% SIH23,
+0.46%
fell 2.2 cents, or 0.1%, to $22.215 per ounce. -
March palladium
PAH23,
+3.36%
climbed by $59.10, or 3.7%, to $1,638.50 per ounce, while April platinum
PLJ23,
+0.97%
shed 10 cents, or less than 0.1%, to $974.50 per ounce. -
March copper
HGH23,
+0.38%
traded at $4.005 per pound, down 0.8%.
Market drivers
Traders will be scrutinizing remarks from Federal Reserve Chair Jerome Powell, who is set to speak at 12:40 p.m. Eastern time at the Economic Club of Washington, D.C.
Tuesday’s speech will be the first time investors have heard from Powell since Friday’s jobs report. It will also be Powell’s first remarks since last week’s Fed policy meeting, when he surprised investors by refusing to push back against the loosening of financial conditions in recent months.
“If Powell strikes a hawkish note and signals that the Fed will still be hiking rates down the road, gold prices are likely to suffer as the dollar jumps,” said Lukman Otunuga, manager of market analysis at FXTM. “Alternatively, a cautious-sounding Powell could offer the precious metal a lifeline which could limit downside losses.”
Looking at technical levels, Otunuga said a breakdown below $1,860 for gold may “open the door towards $1,825 and $1,800, respectively.” If prices can push back above $1,900, gold could challenge $1,950 and $2,000.
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