2018.08.2706:36:00UTC+00Gold Eases As Dollar Holds Steady

Gold prices eased slightly on profit taking Monday after rallying nearly 2 percent in the previous session following dovish comments from U.S. Federal Reserve Chairman Jerome Powell.

Spot gold was down 0.14 percent at $1204.60 an ounce while U.S. gold futures were down 0.22 percent at $1,210.60 per ounce.

The dollar recovered some ground after falling on Friday as Powell signaled a gradual approach to interest rate hikes to protect the economic recovery, keep job growth strong and inflation under control.

In his closely watched speech at the Fed's annual retreat at Jackson Hole, Wyoming, Powell expressed confidence in the economy, but said he sees no signs of a sharp rise in inflation above the Fed's 2 percent target or an elevated risk of the economy overheating.

"There are risk factors abroad and at home that, in time, could demand a different policy response," he added.