Gold prices remain steady during the North American session on Wednesday, rising over 0.30% as risk appetite improves due to the de-escalation and truce of the Israel-Iran conflict. Worse-than-expected housing data in the United States (US) could lead to actions by the Federal Reserve (Fed). Still, Chair Jerome Powell maintains his hawkish rhetoric, which is capping bullion's gains.

XAU/USD trades at $3,334, up 0.34% as the Greenback trims some of its earlier gains, while US equities trade with gains.

Fed Chair Jerome Powell said during his testimony before US Congress that tariffs could cause just a one-time jump in prices, but added that the risks of becoming persistent are enough for the central bank to keep interest rates unchanged.

"If it comes in quickly and it is over and done, then yes, very likely it is a one-time thing" that won't lead to more persistent inflation, Powell said. But "it is a risk we feel. As the people who are supposed to keep stable prices, we need to manage that risk. That's all we're doing."

Boston Fed President Susan Collins echoed Powell's words, saying that policy is appropriate, but open to lower rate cuts later this year.

Data-wise, US New Home Sales dipped in May, due to higher mortgage rates near 7%. Ahead in the week, traders will eye the release of Durable Goods Orders, Gross Domestic Product (GDP) figures, and Initial Jobless Claims prints.

Source: Fxstreet