For K. Sathya Narayanan
Feb 23 (Reuters) – Gold fell from a week high on Tuesday due to the appreciation of the dollar and remained in a tight range as investors took caution in the face of testimony from the chairman of the Federal Reserve of United States, Jerome Powell, before Congress later in the day.
* Spot gold was down 0.1% to $ 1,807.51 an ounce at 1025 GMT. Gold futures in the United States were down 0.1% at $ 1,806.70.
* Movements in gold are indicative of an “expectant focus,” said OANDA analyst Craig Erlam.
* Testimony before the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday will be Powell’s first since President Joe Biden and the Democrats took control of the White House and Capitol.
* “Clearly there will be a number of questions about what (rising US Treasury yields, stimulus, and better economic outlook) would mean for inflation, the Fed’s outlook, and associated risks.” OANDA’s Erlam said.
* The bullion rose earlier to its highest level since Feb. 16 at $ 1,815.63 an ounce, as the dollar briefly fell to a more than a month low.
* However, the US currency has since recovered and was up 0.1% against other currencies.
* The attractiveness of the non-yielding bullion was also overshadowed by Monday’s rise in US Treasury yields, which hit near-year highs.
