Gold Futures were up 0.32% to $1,788.65 by 12:17 AM ET (4:17 AM GMT)
Although inflation had increased, it will move back toward Fed’s 2% target once supply imbalances resolve, said Powell in written remarks prepared for his Tuesday testimony before congress.
Investors now await the hearing to get clues on the pace of U.S. economic recovery from COVID-19 and the outlook for monetary policy.
Gold picked up on Monday after the biggest weekly fall in its worst week in 15 months, as the Fed hinted earlier-than-expect interest rate hikes and tightening of its asset purchase program as it handed down its latest policy decision. The yellow metal rebounded a little as investors bet the tightening will be very gradual.