Gold retreats after Fed Chair’s policy remarks

Gold prices slumped today, Feb. 5, as the US dollar rose following strong US jobs data and policy remarks from Federal Reserve Chairman Jerome Powell.

Bullion for April delivery fell 0.66%, or $13.50, to $2,040.20 per ounce at 11:20 am Makkah time, with spot prices also down 0.82%, or $16.73, to $2,023.02 an ounce.

Silver futures for March delivery, likewise, tumbled 0.97%, or 22 cents, to $22.58 an ounce, in tandem with a 0.28% drop in platinum spot prices to $894.42 per ounce.

In an interview with CBS News, Powell said the US central bank can be "prudent" in deciding when to cut its benchmark interest rate. "The prudent thing to do is...to just give it some time and see that the data confirm that inflation is moving down to 2% in a sustainable way," he was quoted as saying.

Swiss bank UBS forecasts gold prices to rise further, reaching $2,200 per ounce by the end of 2024, as the Fed moves to ease monetary policy.

The US dollar index, which gauges the greenback's strength against a basket of six currencies, gained 0.13% to stand at 104.06 points.