Gold prices steady as markets assess Powell’s rate remarks

Gold prices remained steady after reaching a three-month low following statements from U.S. Federal Reserve Chair Jerome Powell indicating the possibility of further interest rate hikes. Powell noted that if the economy maintains its current direction, further rate increases are a “pretty good guess” of where the bank is headed. The opportunity cost of holding non-yielding bullion rises with interest rate hikes, and the possibility of such an increase caused the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, to fall 0.19% on June 20th.