PRECIOUS-Gold dips after U.S. Fed chief pledges to keep up inflation fight

Reuters

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    * Fed Chair Jerome Powell to testify again 
    * Gold is crypto for Boomers - analyst
    * U.S. dollar steady

 (Updates prices)
    By Bharat Gautam
    June 23 (Reuters) - Gold prices eased on Thursday, pressured
by expectations of aggressive interest rate increases after the
U.S. Federal Reserve chief doubled down on the central bank's
fight against inflation.
    Spot gold  XAU=  fell 0.2% to $1,834.33 per ounce by 0733
GMT. U.S. gold futures  GCv1  eased 0.1% to $1,835.60. 
    "With (Fed Chair Jerome) Powell pointing out overnight that
1% rises were a real possibility, it's a reminder of that
constant pressure on gold prices from rising interest rates,"
said Michael McCarthy, chief strategy officer at Tiger Brokers,
Australia.  urn:newsml:reuters.com:*:nL1N2Y917N  urn:newsml:reuters.com:*:nW1N2X9040
    When asked by a member of the Senate Banking Committee if
the Fed could raise rates by as much as 100 basis points at
once, Powell said he would never take anything off the table,
and officials would make whatever moves were needed to restore
price stability.  urn:newsml:reuters.com:*:nW1N2WO016
    Gold is often viewed as a hedge against inflation and a safe
haven during economic crises, like recession, but saw some gains
after Powell's statement as Treasury yields bore the brunt of
it.  US/  
    Higher interest rates and bond yields raise the opportunity
cost of holding bullion, which yields no interest. 
    Powell is due to testify again in Washington D.C. later on
Thursday. 
    "Gold is expected to follow the commodity complex down. It
is more likely for gold to trade below $1,800/oz in the next two
weeks than not," said Michael Langford, director at corporate
advisory AirGuide.
    "Gold is crypto for Boomers, it has no meaningful industrial
usage and is a psychological store of value much in the same way
crypto was for the younger generation." 
    The dollar  =USD  firmed at elevated levels after some
losses in the previous session, hurting demand for
greenback-priced bullion among buyers holding other currencies.
 USD/  
    Spot silver  XAG=  dropped 0.5% to $21.28 per ounce,
platinum  XPT=  fell 0.2% to $924.22, and palladium  XPD=  rose
0.6% to $1,874.23.

 (Reporting by Bharat Govind Gautam in Bengaluru; Editing by
Shailesh Kuber and Subhranshu Sahu)
 ((BharatGovind.Gautam@thomsonreuters.com;))

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