Gold Edges Higher Ahead Of Powell's Speech

Gold prices edged higher on Tuesday despite hawkish comments from some Federal Reserve officials.

Spot gold rose 0.3 percent to $1,876.52 per ounce, while U.S. gold futures were up 0.2 percent at $1,880.95.

The upside remained capped as the dollar steadied after recent declines.

U.S. rate hike worries returned to the fore after two Fed officials said that the U.S. central bank will have to keep raising rates to somewhere above 5 percent to keep inflation under control.

Federal Reserve Bank of San Francisco President Mary Daly and her Atlanta equivalent, Raphael Bostic both remarked overnight that the Fed funds target rate would rise above 5 percent by the middle of the year.

Traders now await Fed Chair Jerome Powell’s speech at a central bank conference in Stockholm later in the day and the U.S. December inflation report due on Thursday for additional clues on the economic and interest the rate outlook.