Gold prices traded at an eight-month high on Wednesday, taking comfort from a declining dollar and easing Treasury yields.
Spot gold rose 0.4 percent to $1,883.88 per ounce while U.S. gold futures were up 0.6 percent at $1,888.05.
The dollar index slipped, making bullion attractive for overseas buyers.
After Fed Chair Jerome Powell refrained from commenting on rate policy at a symposium, investors now await the release of U.S. inflation data on Thursday for additional clues on the rate outlook.
The dollar might ease further if the data shows lower inflation. Cooling inflation and a slowing economy may convince the U.S. Federal Reserve to ease its tightening of monetary policy.
Fed Chair Jerome Powell didn’t directly comment on the economic or monetary policy outlook at a forum in Stockholm on Tuesday, but he did say that “restoring price stability when inflation is high can require measures that are not popular in the short term.”
Fed Governor Michelle Bowman said she expects more interest rate increases ahead to achieve a sufficiently restrictive federal funds rate and keep it at that level for some time.