Gold Leaps 1% as the Dollar dips after Powell testimony

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Gold soars 1% above the dollarYahoo Free To Use

Gold is a valuable resource. Known for its beauty and rarity, gold has been used by people worldwide for generations.

It is a thing of value, long considered to have intrinsic worth beyond what it could produce from the earth.

Gold is a safe-haven asset that can protect against inflation, and most importantly, it is a hedge against financial crises.

Gold rates were up 1% as the dollar slipped after Federal Reserve Chairman Jerome Powell testified before Congress and did not surprise markets with a tightening monetary stance. In addition, bond yields dropped.

Spot gold rose 1.1% against the dollar to $1,819.58 per ounce at 2:26 p.m (1926 GMT), yesterday. Gold futures increased 1% to $1,818.50.

Powell informed politicians that policymakers were having problems devising strategies to decrease the Federal Reserve’s balance sheet and noted that overall inflation was climbing far too high and is "a very long way" to anything close to restrictive policies.

Following Powell's comments, the dollar lost 0.4% against its rivals, while benchmark 10-year U.S. Treasury yields retreated from their record highs.

Gold is used as a hedge to protect hard-earned funds from inflation, though it's so sensitive to rising U.S. interest rates that these make it prohibitive to hold.

Gold Is A Safe Bet

Gold is a safe bet to invest in as it has been around for centuries and will always be relevant.

It's been a staple investment vehicle for those looking for stability, as its value has steadily increased.

With the looming threat of inflation and other economic factors, investing in gold can offer relief from these threats.

Regal Asset is one of the premier gold investing sites if you are interested in learning more about investing in gold.

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