x
Breaking News
0

Gold positive but upside limited as Yellen testimony looms

CommoditiesJul 11, 2017 01:49PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com – Gold turned positive Tuesday, after Federal Reserve Governor Lael Brainard sparked doubts about a rate hike later this year, warning that further rate increases could stifle inflation.

Gold futures for August delivery on the Comex division of the New York Mercantile Exchange rose by $2.45, or 0.20%, to $1,215.72 a troy ounce.

Brainard’s dovish comments dampened investor expectations of a Fed rate hike later this year, pressuring yields and the dollar, lifting demand for the precious metal.

“I will want to monitor inflation developments carefully, and to move cautiously on further increases in the federal funds rate, so as to help guide inflation back up around our symmetric target." Federal Reserve Governor Lael Brainard said Tuesday.

Brainard also suggested that the Fed would unwind its balance sheet “soon” as long as economic growth remained robust.

The U.S. dollar index fell to session lows against its rivals while the U.S. 10-year dipped to 2.362, down 0.37%.

Gold is sensitive to moves in both bond yields and the U.S. dollar – A weaker dollar makes gold cheaper for holders of foreign currency while a dip in U.S. rates, decreases the opportunity cost of holding non-yielding assets such as bullion.

The upside in gold futures, however, remained capped, as investors look ahead to

testimony from Fed chair Janet Yellen on the state of the U.S. economy and the Fed’s monetary policy outlook.

Yellen is scheduled to testify on the economy before the Senate Banking Committee at 10:00AM ET (14:00GMT) Wednesday. On Thursday, she will appear in front the House Financial Services Committee also at 10:00AM ET.

Other precious capitalised on dollar weaknesses, with silver futures adding 0.95% to trade at $15.777 a troy ounce while platinum futures traded flat at $901.15.

Copper traded at $2.673, up 0.96%, while natural gas, rose by 3.96% to $3.045.

Gold positive but upside limited as Yellen testimony looms
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

 
Are you sure you want to delete this chart?
 
Write your thoughts here
 
Replace the attached chart with a new chart ?
Post
Post also to:
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Jul 12, 2017 8:21AM GMT
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Good
Reply
0 0
George Bloom
George Bloom Jul 12, 2017 5:15AM GMT
Saved. See Saved Items.
This comment has already been saved in your Saved Items
THE correlation isnt 100% , gold and the dollar both rose when the dollar went to 103. and gold price has dropped as the dollar has dropped to 96 area. we are NOT in normal times. money flows  go from risk on to off. can turn on a dime.
Reply
0 0
Silverbug 19
Silverbug 19 Jul 11, 2017 6:37PM GMT
Saved. See Saved Items.
This comment has already been saved in your Saved Items
1980 rates were 15% Gold at an all time high. Go figure!
Reply
0 0
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email