02.12.202109:55:00UTC+00Gold Prices Ease Amid Fed's Hawkish Rhetoric

Gold prices eased on Thursday and the dollar held steady after Fed Chair Jerome Powell said the Federal Reserve was prepared to accelerate the pullback of stimulus at its December policy meeting.

Spot gold dipped 0.4 percent to $1,775.14 per ounce, while U.S gold futures were down half a percent at $1,776.25.

In congressional testimony on Wednesday, Powell said the central bank needs to be ready to respond to the possibility that inflation may not recede in the second half of 2022.

Powell testified that, despite a rise in Delta variant Covid-19 cases over the summer, the economy is on a strong recovery path.

His remarks stated a possibility of a faster end to the bond-buying program and interest rate hike to tackle surging inflation.

On the data front, the U.S. weekly jobless claims report for the week ended November 27 will be featured in the New York session ahead of the monthly nonfarm payrolls report due Friday.