18-07-2018 04:00 PM

Gold Prices traded a little lower on Wednesday and drifted near a one-year low as the dollar reinforced subsequent to comments from Federal Reserve Chairman Jerome Powell on Tuesday that toughened views that the central bank is on trail to slowly raise interest rates.

Gold price was trading lower at $ 1224 at the time of preparing this report.

Kansas City Federal Reserve Bank President Esther George mentioned in remarks that - "At a time of full employment with price stability, policy should be a neutral influence on economic activity," He added - "Gradual further increases in our policy rate will be necessary to return policy to a neutral stance, although there is considerable uncertainty about exactly how far or fast we need to go."

His comments were released after official data showed the country’s industrial production raised in June, enhanced by a spiky bounce back in manufacturing and further gains in mining production, the latest sign of healthy economic development in the second quarter.

The dollar touched a six-month high against the yen, as the USD/JPY pair rose 0.1% to 112.97 after going as high as 113.08 earlier in the day, its sturdy since January 9, subsequent to the optimistic comments from Powell. 

Japan and the European Union signed a trade conformity on Tuesday that would permit more movement of goods and services among the two economies as they seek countermeasures against U.S.’s protectionism.