Gold prices moved higher on Tuesday, rebounding from losses in the previous session, after Federal Reserve Chairman Jerome Powell reaffirmed the central bank will provide more support to the economy.
Testifying before the Senate Banking Committee today, Powell said the central bank needs to be prepared to “act further and I would say we are, if the need is there.”
“As a society, we should do everything we can to provide relief to those who are suffering for the public good,” Powell said.
Traders appeared to be betting on hopes the various stimulus measures to support the economy will eventually result in continued demand for the yellow metal.
The dollar index, which slipped to 99.67 earlier this morning, recovered some lost ground, but was still down in negative territory at 99.32, trailing its previous close by about 0.34%.
Gold futures for June ended up $11.20, or about 0.7%, at $1,745.60 an ounce.
On Monday, gold futures for June ended down $21.90, or about 1.3%, at $1,734.40 an ounce, snapping a four-session winning streak.
Silver futures for July ended up $0.433, or 2.5%, at $17901 an ounce, while Copper futures for July settled at $2.4180 per pound, gaining $0.0140, or 0.6%.
According to the data from the Commerce Department, new residential construction in the U.S. dropped in the month of April.
The report said housing starts plummeted by 30.2% to an annual rate of 891,000 in April after tumbling by 18.6% to a revised 1.276 million in March.
Economists had expected housing stocks to plunge by 23.8% to a rate of 927,000 from the 1.216 million originally reported for the previous month.
The Commerce Department said building permits also slumped by 20.8% to an annual rate of 1.074 million in April after falling by 5.7% to a revised 1.356 million in March. Economists had expected building permits to nosedive by 26.1% to a rate of 1 million from the 1.353 million originally reported for the previous month.