Gold moved lower in Asian trading hours on Thursday as Yellen’s hawkish statement and positive US data pushed the greenback higher at the expense of bullion.
Spot gold was last at $1,146.8/1,147.6 per ounce, down $1.4 from yesterday’s close – up from multi-months low at $1146.10 but struggled to climb above $1,150.
Federal Reserves chairwoman Janet Yellen reiterated her stance that short-term interest rates hike in 2015 remained on track if economic conditions continue to improve as expected.
Yellen was optimistic on the direction of the US economy after first quarter GDP was negative stemming from a harsh winter that slowed consumption and disrupted manufacturing.
“Some of the headwinds restraining economic growth, including the effects of dollar appreciation on net exports and the effect of lower oil prices on capital spending, should diminish over time,” Yellen said.
“As a result, the Federal Open Market Committee (FOMC) expects US GDP growth to strengthen over the remainder of this year and the unemployment rate to decline gradually,” she added.
Meanwhile, producer price index (PPI) in the US came in at 0.4 percent against consensus of 0.2 percent, while the core figure – which strips out the volatile elements – came in at 0.3 percent against expectations of 0.1 percent.
The US dollar index was last at 97.32, up 0.21 while key Asian stock indexes were mixed – NIKKEI 225 rose 0.49 percent and CSI300 climbed 1.09 percent while Hang Seng Index slipped 0.12 percent.
In data, today awaits minimum bid rate from European Central Bank, US unemployment claims and Yellen’s second-day testimony.
As for other metals, silver was last at $15.11/15.16, platinum at $1014/1019, while palladium at $641/646 rose $4.
On the Shanghai Futures Exchange (SHFE), gold for December delivery dropped to 231.55 from 232 per gram on Wednesday’s close.
The post Gold prices hover above multi-months low amid looming US rate hike appeared first on The Bullion Desk.
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