Gold, Copper Decline After Powell's Remarks on Rates Boost Dollar
- Recent volatility shouldn’t weigh on U.S. economy: Powell
- Dollar rises for a second day, reducing appeal of commodities
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Gold and copper futures fell as the dollar was buoyed by a statement from Federal Reserve Chairman Jerome Powell that signaled U.S. policy makers will keep on gradually raising interest rates, undeterred by recent market fluctuations.
“Despite the recent volatility, financial conditions remain accommodative,” Powell said in written testimony to the House Financial Services Committee on Tuesday in Washington. “Some of the headwinds the U.S. economy faced in previous years have turned into tailwinds: In particular, fiscal policy has become more stimulative and foreign demand for U.S. exports is on a firmer trajectory.”