Gold steady as traders await Powell testimony for rate cues

Gold prices remained stable on Tuesday, as investors maintained a cautious outlook and waited for further directions from the US Federal Reserve Chair’s testimony to Congress this week. Traders are awaiting cues on future rates following a ‘hawkish pause’ on monetary policy tightening. Gold is often seen as a hedge against inflation, but interest rate hikes reduce the opportunity cost of holding non-yielding bullion. According to the CME Fedwatch tool, traders are pricing in a 74% chance of a US Fed rate hike in July.