London — Gold prices held their ground on Tuesday as nervous investors awaited testimony from the new chair of the US central bank, but an analyst warned bullion was vulnerable to profit-taking. Spot gold was unchanged at $1,333.15/oz at 9.50am GMT. US gold futures added 0.2% to $1,335/oz. New Federal Reserve chief Jerome Powell is expected to take a neutral line in his testimony to the US Congress, but if he aligns with the current Federal open market committee consensus of three rate increases this year, that is more tightening than is priced in by markets. The dollar index fell before Powell’s testimony, due at 3pm GMT. The index has rebounded 1.7% since falling to a three-year low of 88.25 on February 16. "Some in the market believe he is going to be bit less hawkish, so that’s why the dollar is under pressure," said Georgette Boele, commodity strategist at ABN AMRO in Amsterdam. "Once they realise that the policy’s going to continue like it has, then the dollar should recover a...
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