Gold ahead despite mixed verdict on Yellen
London (Feb 25) Gold made modest gains after US Fed chief Janet Yellen’s testimony yesterday.
US interest rates are going up this year, she said, but not in the near future sparking a widespread debate on when that may be.
Yellen said a rise could follow any meeting from now on if the data warranted it, but early in the second half of the year remains many people’s favourite.
Commerzbank said it was important that gold has not yet fallen below the psychologically important threshold of $1,200 in any lasting fashion.
“Yields on ten-year US Treasuries fell below the 2% mark in response, thus lending support to the gold price, especially as there was no headwind from the US dollar either,” said the broker.
Record highs for blue chips in the UK and the US added to pressure on the gold price, but the return of Chinese investors from their New Year holiday provided some support.
An hour into trading gold was US$5 higher at US$1,205, silver rose again to US$16.52 while platinum was added US$5 to US$1,166.
Silver exchange traded funds have seen notable inflows over the past two days, noted Commerzbank.