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Gold Slides as Dollar Strengthens during Fed Testimony


Gold declined 1.1 percent lower at $1,226.91 per ounce, having earlier hit its lowest since last July at $1,225.58. The metal is down more than 5 percent for the year.

Powell offered an upbeat view of the U.S. economy in an appearance before the Senate Banking Committee, with markets expecting two more interest rate increases this year amid a continued economic expansion.

The dollar, in which gold is priced, gained against a basket of currencies during the testimony, making gold more expensive for non-U.S. investors.

The U.S. dollar is expected to rise in coming sessions amid widespread expectations of two more interest rate increases this year, that will keep bullion in check if trade friction did not escalate.

On chart, gold had breached below the trough of last year, and will turn to $1,200 for support in the near term. If the level failed to hold it up, gold is likely to fall as low as $1,150.

Silver fell 0.9 percent to $15.60 an ounce, dipping to $15.51, its lowest since July 2017. Tracking gold, the white metal extended losses, but got lift at $15.50. In the near term, silver will repeatedly test the support of $15.50, and is likely to slip all the way to $15 if the level is crossed below.

Dealing Room, ICBC Beijing Branch
                       Cheng Yu