- Gold hits record peak at $2141.59 per ounce on Tuesday
- Analyst says gold rally sentimental, could see profit taking
- Focus on Powell's first day of congressional testimony
- Cenbank gold buys more than offsets waning ETF demand - analyst
March 6 (Reuters) - Gold prices held above the $2,100 level on Wednesday, near a record peak hit in the previous session as hopes for U.S. rates easing by mid-year mount, while traders awaited remarks on the economy's health from Federal Reserve Chair Jerome Powell.
Spot gold edged down 0.1% at $2,126.13 per ounce, as of 0458 GMT. U.S. gold futures fell 0.4% to $2,134.30.
Spot prices hit a record peak of $2141.59 per ounce overnight on Tuesday, rallying for a fifth straight session.
Gold's rally is sentiment driven, which was triggered by last week's poor U.S. economic data that gave little more clarity for a June rate cut, said Ajay Kedia, director at Kedia Commodities, Mumbai, adding, without other factors at play, such as dollar's movement, or any surge in geopolitical tensions, gold could see profit taking.
Traders are weighing in risks to the U.S. economic health in a high-interest rate environment and would be tuning into Powell's first day of semi-annual congressional testimony for more clarity on the same.
Gold's rally is sentiment driven, which was triggered by last week's poor U.S. economic data that gave little more clarity for a June rate cut, said Ajay Kedia, director at Kedia Commodities, Mumbai, adding, without other factors at play, such as dollar's movement, or any surge in geopolitical tensions, gold could see profit taking.
Traders are weighing in risks to the U.S. economic health in a high-interest rate environment and would be tuning into Powell's first day of semi-annual congressional testimony for more clarity on the same.
Spot platinum rose 0.4% to $884.16 per ounce, and palladium rose over 1% to $958.20, while silver dropped 0.3% to $23.63.
Reporting by Harshit Verma in Bengaluru; Editing by Sherry Jacob-Phillips and Rashmi Aich
Source: Reuters