Dovish remarks made by the Fed chair, Janet Yellen on Wednesday at the congressional testimony saw gold climb to a near 1 week high, with the dollar dropping in early morning trading on Thursday.
Gold on the Comex gold futures exchange gained $3.40 or .03 percent to $1,222.49 a troy ounce, while the dollar index dropped to near 9 month lows of nearly 0.3 percent at 95.31.
The markets reacted to Fed Chair’s dovish comments that:
• The Fed could now start paying off the $4.5 billion off their balance sheet during this year based on a healthy US economy.
• Interest rates would not need to be raised much further.
Market participants will be focusing on Fed Chair, Janet Yellen’s testimony at the US House Financial Service Committee later today on monetary policies. They will also be waiting for the PPI inflation data, weekly jobless claims and the monthly CPI data due to be released on Friday.
According to Futures traders there is a 40 percent chance that the Fed will raise interest rates this year.
10-year US Treasury yields of the benchmark dipped to 2.32 percent against a high of 2.39 percent in the previous week.
Other Precious Metals
Comex silver futures gained 2.2 cents, or 0.2 percent to $15.90 a troy ounce.
Platinum gained 0.4 percent at $922.20.
Palladium was steady at $861.30 an ounce.
Copper gained 0.5 percent at $5,906 per tonne.
Lead was at $2,321 per tonne.
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