Spot gold held its ground at $1,949.59 per ounce by 0248 GMT, while U.S. gold futures fell 0.5% to $1,961.20.
"Gold prices seem exhausted lately, as intermittent bounces over the past month have failed to find much follow-through ...
Investors are now focusing on Powell's congressional testimony on Wednesday and Thursday for further guidance on interest rates following the Fed's hawkish pause on monetary policy tightening last week.
Although gold is considered a hedge against inflation, interest rate hikes raise the opportunity cost of holding non-yielding bullion.
Additionally, the European Central Bank should raise interest rates again in July as inflation risks are skewed towards higher outcomes, Slovakia's central bank chief said on Monday, while the Bank of England is expected to raise rates by another 25 basis points on Thursday.
Persons:
Jerome Powell, Yeap Jun Rong, IG's, Rong
Organizations:
U.S . Federal, Investors, Fed, U.S ., European Central Bank, Bank of England
Locations:
China