Gold
rebounded from the lowest level in seven weeks and silver rose after
Federal Reserve Chair Janet Yellen signaled an interest-rate increase
isn™t imminent. Palladium climbed to the highest in six weeks.
Yellen,
testifying to the Senate Banking Committee on Tuesday, indicated that a
change in the Fed™s guidance on interest rates won™t lock the central
bank into a timetable for tightening. Higher interest rates curb gold™s
appeal because the metal generally gives returns only through price
gains.
Gold
for April delivery rose as much as 1.2 percent to $1,211.70 an ounce
and traded at $1,209.50 at 8:05 a.m. on the Comex in New York,
rebounding from three days of losses. Bullion dropped to as low as
$1,190 an ounce on Tuesday, the lowest price since Jan. 5.
Prices
may get a boost from buyers in China, who returned from a week-long
holiday on Wednesday, Howie Lee, an investment analyst at Phillip
Futures Pte, wrote in a note.
Silver for May delivery climbed 2.5 percent to $16.64 an ounce.
Source : Bloomberg
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