Ella 
Gold prices rose to $1,978 in early Asian trading on Friday, the highest since late July. The dollar fell after Fed Chairman Jerome Powell’s dovish comments, and safe-haven capital inflows drove gold prices higher.
Meanwhile, the U.S. Dollar Index, which measures the greenback against six other major currencies, consolidated recent losses near 105.85. U.S. Treasury yields were higher, with the 10-year yield at 4.99%, the highest since 2007.
U.S. employment data on Thursday showed that the U.S. economy remains solid. Weekly jobless claims fell to 198,000 in the week ended October 14, the lowest level since January. Existing home sales fell 2.0% in September from a month earlier and 19% from a year earlier, the lowest level since 2010. The data suggests that rising mortgage costs are having a negative impact on housing market sentiment.
Federal Reserve Chairman Jerome Powell said he hopes to pause raising interest rates and monitor fluctuations in economic data in the coming months. Powell also said that further tightening may be appropriate if there is more evidence that economic growth is above trend and the labor market is tight. Federal Reserve Chairman Jerome Powell’s speech sent the U.S. dollar lower across the board and boosted U.S. dollar-denominated gold.
In the absence of major U.S. economic data, market participants will be paying close attention to speeches from Fed officials including Logan, Mester and Harker.
