Prices of gold gained about 1% or $ 15 an ounce, bouncing off one-month lows from the previous session, as Janet Yellen, emphasizes that the Federal Reserve should proceed step by step with the time of its next rise types, ahead of a weak US economic data dented expectations of an immediate rise in the United States. interest rates.
On the Comex, gold for June delivery traded between $1,217.00 and $1,242.00, before closing at $1,237, up $15 or 1.23% on the session.
Spot gold was little changed at $1,221.40 an ounce. The metal had fallen to a one-month low of $1,208.15 on Monday, before closing the day up 0.4 percent.
By quoting heightened risks to the financial and global economic conditions, as well as the concerns of many years with the oil price, Yellen reiterated that only incremental increases benchmark Federal Funds Rate Fed should be justified in the coming years. The Federal Open Market Committee has kept the Fed funds rate in a target range of between 0.25 and 0.50% for each of the last two meetings since the abandonment of a policy of zero interest rate in seven years December.
Monday’s data demonstrated that the US consumer spending barely rose in February and inflation retreated, suggesting that the Federal Reserve may remain cautious about raising interest rates this year even as the labor market tightens quickly.
Accordance the faint data, economists cut their growth estimates of GDP for the first quarter, while the dollar fell 0.2 percent against a basket of currencies.
The disappointing outcome dampened expectations of an imminent rise in interest rates in the US, some Fed officials last week that it could be as early as next month if the economy maintains its momentum.
Amid a weakening global trend, Gold for delivery in April fell Rs 72, or 0.25%, to Rs 28,386 per 10 grams at the Multi Commodity Exchange.
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