Gold prices rise as US Dollar tumbles after Powell’s speech

• Gold prices jump over 1% after Fed Chair Powell hints at upcoming rate cuts, expressing confidence in inflation nearing the 2% target.
• The US Dollar Index (DXY) falls 0.82% to 100.68, as Powell’s remarks push traders to bet on a 50 bps rate cut in September.
• US 10-year Treasury yields drop five basis points to 3.80%, supporting bullion’s rise, as market eyes the August Nonfarm Payrolls report for further guidance.

Gold price edges up over 1% on Friday as the Greenback and US Treasury bond yields dive following dovish remarks from Federal Reserve Chair Jerome Powell, who signaled he’s confident that inflation is edging towards the 2% goal and that rates should be cut. The XAU/USD trades at $2510 after bouncing off daily lows of $2484.

Bullion prices rose sharply as Powell said, “The time has come for policy to adjust. ” He acknowledged that inflation is on the path to 2% and expressed that the Fed has shifted towards achieving the maximum employment mandate.