Gold hovers near 3-month peak; focus shifts to Powell testimony
Market focus is on Fed Chair Powell's two-day congressional testimony on Wednesday and Thursday.
clung to a on Tuesday, supported by softer and construction spending, while investors awaited 's testimony and due this week.FUNDAMENTALS
* Spot gold edged 0.1% lower to $2,112.39 per ounce, as of 0230 GMT, but hovered near Monday's levels of $2119.69, its highest since Dec. 4. U.S. gold futures fell 0.3% to $2,120.50.
* London's gold price benchmark hit an all-time high of $2,098.05 per troy ounce at an afternoon auction on Monday, surpassing the previous record of $2,078.40 set on Dec. 28, the London Bullion Market Association (LBMA) said.
* Market focus is on Fed Chair Powell's two-day congressional testimony on Wednesday and Thursday.
* Other economic releases due this week that could move the needle on U.S. rate cut expectations include Institute for Supply Management (ISM) services data at 1500 GMT, and the Job Openings and Labor Turnover Survey (JOLTS) on Wednesday, and the non-farm payroll report on Friday.
* Data last week showed U.S. manufacturing slumped further in February and inflation gradually easing, while consumer sentiment stood weak.
* The Fed is under no urgent pressure to cut rates given a "prospering" economy and job market, Atlanta Fed President Raphael Bostic said on Monday in remarks that highlighted the risk inflation may get stuck above the central bank's 2% target or be sent even higher by "pent-up exuberance."
* Traders now see a 65% chance for a June U.S. rate cut, according to LSEG's interest rate probability app.
* Lower interest rates boost the appeal of non-yielding bullion.
* Spot platinum fell 0.7% to $890.90 per ounce, and palladium dropped nearly 1% to $951.12, while silver fell 0.9% to $23.68.
