• Gold price drops slightly as the focus shifts to Fed Powell’s testimony.
• The appeal for the US Dollar weakens as February’s PMI figures cast doubts over the strong US economic outlook.
• US ADP Employment and JOLTS Job Openings data will provide fresh cues over job growth.

Gold price (XAU/USD) edges down in Wednesday’s European session after failing to recapture the all-time high of around $2,145.00. The precious metal is expected to stay on the sidelines as investors await Federal Reserve (Fed) Chair Jerome Powell’s testimony before Congress, starting at around 15:00 GMT.

Investors expect that Jerome Powell will support keeping interest rates in the range of 5.25%-5.50% until he gets evidence that inflation will return to the desired rate of 2%. Non-yielding assets, such as Gold, face outflows when the Fed favors a hawkish interest rate stance for an extended period.

Market participants will also focus on the United States ADP Employment Change and JOLTS Job Openings data for February and January, respectively, which will provide more insights into labor demand.