Gold advances as USD weakens before Powell's congressional testimony

Gold prices have gained ground as the US dollar weakened across major pairs ahead of Federal Reserve Chair Powell's scheduled congressional testimony. EURUSD and GBPUSD both advanced against the greenback, while USDCHF extended its decline and USDSEK also moved lower, reflecting broad-based dollar weakness. The precious metal's rise correlates with increased uncertainty about the Fed's policy trajectory and market positioning ahead of Powell's remarks, which could provide crucial insights into the central bank's thinking on rates and economic conditions. Currency markets are showing risk-on sentiment with traditional safe-haven currencies like CHF strengthening against the dollar. Technical analysis suggests gold could test recent highs if dollar weakness persists following Powell's testimony. Traders are particularly focused on any hints about the Fed's inflation outlook and potential timeline for policy adjustments, which could significantly impact both gold and currency markets in the near term.