Gold prices are solidly higher and nearer daily highs in midday U.S. trading Wednesday. Precious metals were boosted today by comments from Federal Reserve Chairman Jerome Powell to the U.S. House of Representatives. Powell cited several concerns regarding the U.S. economy that traders deemed dovish on monetary policy. August gold futures were last up $13.20 an ounce at 1,413.70. September Comex silver prices were last up $0.088 at $15.235 an ounce.
Powell said that since the June FOMC meeting uncertainties, including world trade tensions, global growth and very low inflation. These continue to cloud the outlook for the U.S. economy and these matters are not improving. Also, that the U.S. economic outlook is solid, but the prospects for other major world economies are worrisome enough to possibly warrant a U.S. rate cut. The marketplace is reading his remarks as fully dovish on U.S. monetary policy, which in turn strongly suggests the Fed will cut U.S. interest rates sooner rather than later, and possibly later this month. That’s a bullish scenario of the precious metals markets.
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