Yellen's dovish tone leads gold traders back into market, reckons Ford

New York (Mar 17)  Mining Capital's Alastair Ford mulls over the behaviour of the gold price recently in the light of the Fed's small US interest rate rise.

 Normally, theoretically, it would be expected that a rate rise would mean lower gold prices, but the increase had been very well trailed in the market, notes Ford.

 "So I think any selling  was that likely to happen was already in the market," said Ford, adding that Yellen's commentary was slightly more dovish than many commentators had expected.

 "This led the gold buyers back into the market somewhat. They were expecting perhaps a slightly more aggressive programme of interest rate rises," he told Proactive's  Andrew Scott.

Source: ProactiveInvestors