Gold prices edged lower on Tuesday but held not far off a six-week high hit in the previous session, as investors awaited a confirmation hearing for US Federal Reserve chair nominee Jerome Powell and a possible Senate vote on US tax reforms. Spot gold was down 0.1 percent at $1,293.83 an ounce, as of 0739 GMT. In the previous session, the metal touched a high of $1,299.13 an ounce, its highest since Oct. 16.
US gold futures dipped 0.1 percent to $1,293.20. In remarks prepared for his Tuesday hearing released by the Fed, Powell defended the central bank's use of broad crisis-fighting powers positioning himself as an extension of the central bank policies of current Chair Janet Yellen and her predecessor Ben Bernanke.
"His (Powell's) decisions on rates are suggested to be almost indistinguishable from those of his predecessor, but I would not be surprised if in the next few months we see him taking a dovish path," ActivTrades chief analyst Carlo Alberto de Casa said.
Spot gold may seek a support around $1,292 per ounce, and then resume its rally towards a resistance at $1,301, according to Reuters technical analyst Wang Tao.
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