Gold futures were edging lower on Wednesday as market participants awaited a speech from Federal Reserve Chairman Jerome Powell and as bitcoin, one of gold’s biggest rivals as a safe haven, hit a fresh record ahead of the hotly anticipated debut of cryptoplatform Coinbase Global on the Nasdaq.
Naeem Aslam, analyst at AvaTrade, says that gold is still maintaining an upward momentum as concerns about the Federal Reserve dialing back accommodative policies are overblown, pointing to a regime of lower interest rates for longer that would benefit bullion.
“The Fed has assured investors and traders that they aren’t going to change the sailing path of their monetary policy, and further clarification of this is going to come when Jerome Powell speaks later today,” Aslam wrote.
Powell is expected to speak at the Economic Club of Washington at noon Eastern Time.
traded off $2.90, or 0.2%, at $1,745.70 an ounce on Comex.
Gold’s trade comes as bitcoin
touched a record near $65,000, with the digital asset seen by some as a competitor to gold and perhaps drawing some flows away from the haven asset. The rally in bitcoin comes as Coinbase Global
will begin trading on the Nasdaq under the symbol “COIN.” The digital platform was given a reference price of $250 a share late on Tuesday evening.