Gold prices stabilize as Fed chief expects inflation to slow

Gold prices stabilized on Tuesday, with US Federal Reserve Chairman Jerome Powell confirming that the current high levels of inflation will not continue.

In pre-prepared statements for Powell’s testimony before the House of Representatives scheduled later today, June 22, he said that inflation will slow towards the US central bank's target as supply imbalances end.

"With temporary supply effects abating, inflation is expected to decline again towards the long-term target,” Powell noted.

Spot gold settled at $1,784.10 per ounce, and gold futures contracts for August stabilized at $1,783.70 per ounce, by 09:30am Makkah time.

Elsewhere, silver fell 0.3% to $25.95 per ounce, palladium gained 1.2% to hit $2,589 per ounce while platinum rose 0.4% to reach $1,066.81 per ounce.

The US dollar index - which measures the performance of the US currency against a basket of six currencies – rose marginally by 0.1% to hit 92.021 points.