Gold at record levels as Powell says Fed cuts likely this year

Gold prices on Wednesday hovered near a record peak hit in the previous session after U.S. Federal Reserve Chair Jerome Powell said interest rate cuts are still likely in the coming months if inflation continues to ease.

FUNDAMENTALS

* Spot gold ticked 0.1% lower to $2,146.29 per ounce, as of 0138 GMT. U.S. gold futures fell 0.2% to $2,153.60.

* Spot prices hit a record peak of $2,152.09 per ounce overnight on Wednesday, rallying for a sixth straight session.

* Powell told U.S. lawmakers on Wednesday that interest rate cuts were still likely in coming months but only if warranted by further evidence of falling inflation.

* Powell will appear before the Senate Banking Committee later in the day.

* The U.S. dollar index fell to a one-month low after Powell’s remarks. A softer dollar makes bullion less expensive for other currency holders. * In a separate media interaction, Fed’s Neel Kashkari said it is appropriate for the Fed to cut rates only twice, or possibly just once, this year. * The median forecast of Fed officials in December was three rate cuts this year, which would take the Fed policy rate to a range of 4.5%-4.75%, from its current 5.25%-5.5% range.

* Lower rates boost the appeal of non-yielding bullion.

* U.S. private payrolls increased slightly less than expected in February, data showed on Wednesday, while wages for workers remaining in their jobs increased at the slowest pace in 2-1/2 years, consistent with a cooling labor market.

* The U.S. Labor Department’s more comprehensive and closely watched February non-farm payrolls report is due on Friday.

* Spot platinum fell 0.2% to $905.70 per ounce, and palladium rose 0.3% to $1045.09. Autocatalyst palladium popped back above the $1,000 mark in the previous session for the first time since Jan. 12.

* Spot silver dropped 0.4% to $24.06.

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