Gold futures prices rose to their highest levels on Wednesday as investors awaited testimony from the head of the US Federal Reserve Janet Yellen and expressed the central bank for officials to be cautious about increasing interest rates.
Comex gold futures were at $1,223.24 a troy ounce, up $8.90, or around 0.7%, after touching a session peak of $1,224.93.
Spot gold rose 0.1 per cent to $1,218.46 per ounce.
MCX Gold was up 0.31 per cent at Rs 27,920 per 10 gram.
The Federal Reserve is still on track to raise interest rates and start cutting its balance sheet before the end of the year, despite falling inflation, Yelen said in remarks prepared before her testimony to the House Financial Services Committee.
The increase in prices and the reduction of the balance sheet would be gradual.
The Fed raised interest rates at its meeting in June and held up its expectations for a rate hike again this year, but weak inflation expectations have since raised doubts about whether the US central bank will be able to stick to the planned tightening track.
Yellen is poised to give its biannual monetary policy testimony to Congress on Wednesday and Thursday, and investors will look at it for clues as to when the Fed will begin to reduce its balance of $ 4.5 trillion, Effect of hardening the US Money supply
In the mean time, two of her colleagues cited the growth of low wages and muted inflation as reasons for caution in further increases in the interest rate.
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