Gold rose on Wednesday after marking a seven-week low the previous session, as the dollar dipped on talk that a dovish Federal Reserve chair would be appointed next year.
The greenback eased against a currency basket after a Politico report said Fed Governor Jerome Powell was favoured by U.S. Treasury Secretary Steven Mnuchin over former governor Kevin Warsh. Janet Yellen’s term as chair expires in February.
Powell is seen as more dovish than Warsh, who has criticised the Fed’s bond-buying programme in the past.
PG View: And thanks to Jeff Gundlach, über-dove Neel Kashkari has been forced into the mix as well.