CHICAGO, March 6 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday on the dovish remarks made by the Federal Reserve Chair Jerome Powell to the U.S. Congress.
The most active gold contract for April delivery rose 16.30 U.S. dollars, or 0.76 percent, to close at 2,158.20 dollars per ounce.
Speaking to the U.S. House of Representatives committee on U.S. monetary policy on Wednesday, Powell said interest rate cuts will likely be appropriate this year and that interest rates are at their peak for the current cycle.
Powell said inflation has eased notably, and U.S. economy can achieve a soft landing. Nevertheless, the Fed needs greater confidence on winning the inflation battle before lowering interest rates.
Following Powell's comments, U.S. dollar index and Treasury yields fell, boosting gold.
Speaking at the National Interagency Community Reinvestment Conference in Portland, Oregon, San Francisco Fed President Mary Daly said Wednesday that rising housing costs have contributed to higher inflation.
However, holding interest rates at the current level and prolonging for "too long" cutting them could hurt the national economy and "create an unforced error," she said.
Economic data released Wednesday were mixed. The Automated Data Processing Inc. reported that U.S. private sector employment increased by 140,000 jobs in February and annual pay was up 5.1 percent year over year.
The U.S. Commerce Department reported that U.S. wholesale inventories dropped 0.3 percent instead of dipping 0.1 percent as estimated in January.
The U.S. Labor Department reported that U.S. employers posted 8.86 million job vacancies in January, down slightly from 8.89 million in December and about in line with economists' expectations.
U.S. February jobs report will be released on Friday.
Silver for May delivery rose 50.90 cents, or 2.12 percent, to close at 24.493 dollars per ounce. Platinum for April delivery rose 27.20 dollars, or 3.07 percent, to close at 914.40 dollars per ounce.
