U.S. Gold futures prices fell to the lowest levels for a 5th straight session on Wednesday, after Federal Reserve Chair Janet Yellen said that the central bank is on track to raise interest rates “before year end”, as the U.S. economy improves.
Fed policy makers expect growth “to strengthen the remainder of this year and the jobless rate to decline gradually,” Yellen said in a Wednesday testimony before the Committee on Financial Services of the House in Washington. The higher rates curb lure of gold because the metal pays no interest or provide returns as assets such as stocks and bonds.
Gold futures for August delivery lost 0.7 percent to $1,145.10 an ounce. A day earlier, gold fell to $1,144.40, a level not seen since March 17.
The prices of gold have come under pressure in recent weeks amid indications that the US economy is regaining strength after a recent bout of weakness, supporting the case for higher interest rates later this year.
Gold prices were trading flat at the Multi Commodity Exchange, MCX Gold September contract was trading at Rs 26106 up Rs 24, or 0.09 percent.
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