FX.co ★ Gold prices weighed down by Powell’s remarks

Gold prices declined on comments from Fed’s Chair Jerome Powell in support of gradual rate hikes.

On Friday, Powell reiterated that a gradual approach to raising interest rates remained appropriated. His comments contrast with Donald Trump’s criticism of the central bank’s monetary policy.

Trump earlier lashed out at the Fed’s plans to raise interest rates. At the time of writing, the US dollar index, a measure of the value of the greenback relative to a basket of six foreign currencies, edged down by 0.01% to 95.07.

Meanwhile, gold futures for December delivery were down 0.2% to settle at $1212.7 per ounce. With gold's safe haven status eroding, most investors prefer to buy the US dollar, analysts note.