Gold
futures fell, capping the longest slump this year, after Federal
Reserve Chair Janet Yellen failed to allay concerns that U.S. interest
rates will rise, eroding the appeal of the precious metal as an
alternative asset.
Yellen
signaled that a change in the Fed™s guidance on interest rates won™t
lock it into a timetable for tightening, according to testimony prepared
for delivery before the Senate Banking Committee. Gold extended a slump
to a seven-week low.
Gold
futures for April delivery fell 0.3 percent to settle at $1,197.30 an
ounce at 2:03 p.m. on the Comex in New York. The price dropped for the
third straight session, the longest slump since Dec. 24. Earlier, the
metal touched $1,190, the lowest for a most-active contract since Jan.
5.
Yellen
testified in the Senate on Tuesday and is set to appear before the
House of Representatives Wednesday. Richmond Fed President Jeffrey
Lacker was cited by Market News International as saying the central bank
may raise rates in June or April. Higher rates curb gold™s appeal
because the metal generally gives returns only through price gains.
Source: Bloomberg
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