Gold Hits Four-Week High as Fed’s Powell Eases Stimulus Concerns
- Powell said economic recovery not progressed enough to taper
- Producer price data beats expectations following hot CPI print
Photographer: Akos Stiller/Bloomberg
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Gold climbed to a four-week high as inflation concerns boosted demand for the metal as a store of value while Federal Reserve Chair Jerome Powell reassured investors on the outlook for stimulus. Copper and most other base metals fell.
Powell said Wednesday in congressional testimony that the recovery hasn’t progressed enough to begin paring the central bank’s monthly asset purchases. At the House hearing, Powell reiterated that the Fed stands ready to act should inflation expectations rise meaningfully. Data released on Tuesday showed prices paid by U.S. consumers surged in June by the most since 2008.