Gold Gains After Powell's Reassuring Comments On Inflation

(RTTNews) - Gold jumped nearly 1 percent toward $4,600 an ounce on Tuesday but was poised for a monthly loss of about 13 percent, marking its worst monthly performance since October 2008.

Spot gold traded almost 1 percent higher at $4,560 an ounce as positive comments from Federal Reserve Chair Jerome Powell helped traders temper their rate-hike expectations. U.S. gold futures for June delivery were up 0.7 percent at $4,588.

The dollar was on track for its best month since October 2024 as the Middle East conflict upended energy markets and sent investors rushing to the world's primary reserve currency.

Bond yields dipped and a risk-on tone returned to markets after Fed Chair Powell downplayed inflation risks.

Powell said Monday that longer-term inflation expectations remain "well anchored" and there is no need to hike rates in the near term because of the oil shock.

Powell also said that the current shake-up in the private credit space doesn't seem to have the makings of a broader systemic event.

Traders were also reacting to reports suggesting that the Trump administration is willing to end U.S. military operations against Iran even if the Strait of Hormuz remains largely closed.

Instead, the administration plans to achieve core objectives - crippling Iran's navy and missile capabilities and resuming normal operations in the strait, the Wall Street Journal reported.