Gold futures rose on Thursday nearing a one-week high on a weaker dollar and lower US yields after Fed’s Chair Janet Yellen said the Fed would only gradually tighten monetary policy, curbing speculation that interest rates would rise more than once this year.
Comex gold futures were at $1,222.49 a troy ounce. Spot gold rose 0.3 per cent to $1,222.71 per ounce.
Prices rose for a third consecutive session on Wednesday after cautiously wary of inflation, and noted that the Federal Reserve will not need to raise interest rates “much more than that” to reach the current low estimates of the neutral funds rate.
She also said that the US economy is healthy enough so that the Fed begins to reduce the public budget of $ 4.5 trillion sometime this year.
Market participants considered this speech mainly pessimistic.
While the weakness of the dollar can be beneficial for short-term gold, the continued strength of US stocks is still dragging.
Technical rebound may lead to push prices above the level of $ 1230, moving around the 200-day average, it is likely to be crowded in the range of 1,18- US $ 1,180 in the short term.
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