Gold holds near six-week high ahead of Fed chair hearing

Yesterday, Gold prices held near a six-week high of $1,299 an ounce hit, ahead of a congressional hearing on Fed chair nominee Jerome Powell. Powell defended the Fed’s use of broad crisis-fighting powers in remarks prepared for his Tuesday Senate confirmation hearing, positioning himself as an extension of the Central Bank policies of current Fed Chair Janet Yellen and her predecessor Ben Bernanke.

On Monday, the US Dollar rallied, erasing losses from previous sessions amid renewed optimism over the outlook for US tax reforms. The move came as both Republicans and Donald Trump sounded upbeat comments over the progress on efforts to overhaul the US tax code. Trump tweeted on Tuesday that the bill was “coming along very well” and has received “great support.” But It is not yet clear whether Republicans secured enough votes to pass the bill. However, that did not stop Republican senator Pat Toomey of Pennsylvania from echoing Trump’s confident tone. Toomey told reporters that there was “growing momentum” for the bill and that “we’re going to get this done soon.”

On Monday as well, the Canadian Dollar slipped against the US Dollar, as US Oil prices pulled back from a two-year high amid uncertainty about Russia’s resolve to extend output cuts at a meeting of producing countries this week. The Loonie’s next major catalyst could come at the end of this week, with both a domestic jobs report for November 2017 and gross domestic product data for the quarter that ended in September 2017.