Fed's Powell: Best way forward is to keep raising rates

In Delhi gold rates of 99.9% and 99.5% purity edged up by Rs 25 each to Rs 30,825 and Rs 30,675 per 10 grams respectively

In Delhi gold rates of 99.9% and 99.5% purity edged up by Rs 25 each to Rs 30,825 and Rs 30,675 per 10 grams respectively

Traders said sentiment was downbeat as gold prices slipped to their lowest in a year in global markets, as the dollar firmed after Federal Reserve Chairman Jerome Powell's usa economic outlook reinforced views that the central bank is on track to steadily hike interest rates, eroding appeal of the precious metal.

The WSJ Dollar Index, which measures the USA currency against a basket of 16 others, rose less than 0.1% to 88.71, closing at its highest level since June 26, 2017.

The New Zealand dollar gained as Federal Reserve Jerome Powell continued to deliver an upbeat assessment of the world's biggest economy in his second day of testimony, while USA trade relations were also in view.

UnitedHealth Group Inc weighed the most heavily on the Dow, its shares down 2.6 percent as the largest US health insurer reported higher-than-expected quarterly medical costs.

Meanwhile, a weaker Euro supported the Greenback where the single currency dropped by 0.42 against the U.S. Dollar to close the session in the red at 1.16602 EURUSD.

In written testimony to the Senate Banking Committee, Powell discounted trade policy risks and signalled not just that he believes the economy is doing well, but that an era of stable growth may continue, provided the Fed gets its policy decisions right.

The Fed raised rates in June and policymakers have indicated they expect two more increases this year.

Copper prices plunged to one-year lows as fund selling accelerated due to worries about demand from the trade tussle between the USA and top consumer China. The same was evident from a goodish pickup in the US Treasury bond yields, which provided an additional boost to the buck and further collaborated towards driving flows away from the non-yielding yellow metal.

"Currency weaknesses are resulting in outperformance for European indices against their US counterparts", Joshua Mahony, market analyst at IG, said.

Analysts now see second-quarter S&P 500 earnings growth of 21.2 per cent, up from 20.7 per cent on Jul 1.

The offshore yuan had dropped after U.S. President Donald Trump's top economic advisor, Larry Kudlow, said at an investment forum in NY that he believed Chinese President Xi Jinping has blocked progress on a deal to end dueling U.S. and Chinese tariffs.

Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.15% to 794.01 tonnes on Monday.

Amid the simmering trade tensions, the Chinese yuan extended losses to touch a one-year low of 6.779 per dollar in offshore trading.

At the time of writing, the Pound was up 0.08% to $1.3245, with today's data the key driver, though there is always Brexit chatter to hit the markets.

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