Gold prices dropped from its highest level since November as advance in stocks reduced the demand for the metal.
Stocks were seen trading to its highest level in over two weeks, as the Federal Reserve’s (Fed) new Chairwoman Janet Yellen made her first speech before congress on Tuesday in which she hinted the Fed will go ahead with its target to slowly reduce its easing policy as the labour market recovers.
The yellow metal advanced 70% higher from December 2008 to June 2011 as the Fed injected over $2 trillion into the financial system.
Gold bounced back 6.7% amid the rise in physical demand and the Fed continues to reduce monthly bond purchases.
Gold declined 0.4% to $1,285.97 an ounce, after rising to its highest price of $1,293.93, the highest since Nov 14. The metal’s delivery for April fell 0.3% lower to $1,286 on the Comex in New York.
Stocks in China advanced on the unexpected rise in exports, which climbed to 10.6% in January, while imports rose 10% higher and the country’s traded surplus expanded.
Gold- Yellen Testimony
The Federal Reserve’s (Fed) new Chairwoman Janet Yellen made her first speech before congress on Tuesday in which she hinted the Fed will go ahead with its target to slowly reduce its easing policy regardless of the recent weak jobs data.
“The economic recovery gained greater traction in the second half of last year,” according to Yellen.
“If incoming information broadly supports the Committee’s expectation of ongoing improvement in labor market conditions and inflation moving back toward its longer-run objective, the Committee will likely reduce the pace of asset purchases in further measured steps at future meetings,” according to Fed Chair Yellen.
Visitwww.hymarkets.com to find out more about our products and start trading today with only $50 using the latest trading technology today.
Gold prices dropped from its highest level since November as advance in stocks reduced the demand for the metal.
Stocks were seen trading to its highest level in over two weeks, as the Federal Reserve’s (Fed) new Chairwoman Janet Yellen made her first speech before congress on Tuesday in which she hinted the Fed will go ahead with its target to slowly reduce its easing policy as the labour market recovers.
The yellow metal advanced 70% higher from December 2008 to June 2011 as the Fed injected over $2 trillion into the financial system.
Gold bounced back 6.7% amid the rise in physical demand and the Fed continues to reduce monthly bond purchases.
Gold declined 0.4% to $1,285.97 an ounce, after rising to its highest price of $1,293.93, the highest since Nov 14. The metal’s delivery for April fell 0.3% lower to $1,286 on the Comex in New York.
Stocks in China advanced on the unexpected rise in exports, which climbed to 10.6% in January, while imports rose 10% higher and the country’s traded surplus expanded.
Gold- Yellen Testimony
The Federal Reserve’s (Fed) new Chairwoman Janet Yellen made her first speech before congress on Tuesday in which she hinted the Fed will go ahead with its target to slowly reduce its easing policy regardless of the recent weak jobs data.
“The economic recovery gained greater traction in the second half of last year,” according to Yellen.
“If incoming information broadly supports the Committee’s expectation of ongoing improvement in labor market conditions and inflation moving back toward its longer-run objective, the Committee will likely reduce the pace of asset purchases in further measured steps at future meetings,” according to Fed Chair Yellen.
Visit www.hymarkets.com to find out more about our products and start trading today with only $50 using the latest trading technology today.
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