Gold prices dropped on Tuesday in Asia while the dollar also slid. Traders will take cues from Federal Reserve Chairman Jerome Powell’s speech on Wednesday to see which direction the precious metal will go.
Gold futures for February delivery on the Comex division of the New York Mercantile Exchange traded 0.05% lower at $1,228.2 a troy ounce by 10:29 PM ET (03:30 GMT).
Jerome Powell will appear at the New York Economic Club on Wednesday to deliver a speech on “The Federal Reserve’s Framework for Monitoring Financial Stability.” The Fed will then release minutes of the meeting the following day.
The market expects the Fed to raise interest rates in December for the fourth time this year. A hawkish stance means a firmer dollar, which makes dollar-denominated assets such as gold more expensive for foreign buyers.
The US Dollar Index that tracks the greenback against a basket of other currencies lost 0.06% to 96.920.
This week’s G20 summit is another major focus for market watchers, who will see if U.S. President Donald Trump and his Chinese counterpart Xi Jinping can de-escalate the U.S.-China trade war.