Gold futures losses reported near a 7-1 / 2 months in the North American trade on Wednesday after Fed’s Chair Janet Yellen said that financial conditions have grown less favorable to growth as risk aversion sent investors to safe-haven assets amid a dryer on world stock markets and concerns about the global economy.
Gold for April delivery on the Comex Exchange shed $9.30, or 0.78%, to trade at $1,189.30 a troy ounce.
Spot gold ticked up 0.2 per cent to $1,190.81 an ounce. The metal had climbed to $1,200.60 on Monday, the highest since June 2015.
If these conditions persist, would think about the economy, said the head of the Fed.
In remarks prepared published before his testimony before the Committee on Financial Services of the House, Fed President Yellen said that if the economy disappoint, lower path of the federal funds rate would be appropriate.
Testimony before the Committee on Financial Services of the House will begin at 15:00 GMT, or 10 a.m. ET. It is hoped that the head of the Fed’s first rate hike to defend the US central bank in a decade last December and is likely to insist that further rises this year remain on track, albeit at a slower pace.
A gradual process to higher rates is seen as less of a threat for gold prices to a rapid series of increases.
The stock markets were hit hard earlier in the week on worries about the health of the banking sector in the euro area, with an easy monetary policy seen crimping bank profits and thus its ability to repay debt.
Asian stocks fell Wednesday morning amid concerns banking sector, while European stocks fell for the second day on Tuesday.
The US dollar nursed losses of approximately minimum 3-1 / 2 month low on Wednesday, pressured by the specter of a global economic slowdown and European banks they struggled to fend off growing doubts about his health and as oil prices fell .
At the Multi Commodity Exchange, silver for delivery in March dropped by Rs 477, or 1.28%, to Rs 36,771 per kg in futures trading today, as participants cut down their bets.
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