Gold prices are rising and attention is on Yenin’s comments


Gold prices rose, in the European Markets on Tuesday, to be steady above the lowest recorded level over a week, at earlier time in yesterday’s trading, during which gold prices incurred the biggest daily loss in five months driven by the rise of the US dollar and the US bond yields. Investors carry on the statements of the President of the US Federal Reserve, Janet Yellen, expected to be issued later today. 

 

Gold prices rose by more than 0.2% as of 10:05 GMT to trade at $ 1280.20 per ounce from the opening level of $ 1276.70 and recorded highest level of $ 1281.38 and lowest level of $ 1276.55. 

 

Gold prices declined yesterday by 1.3%, in the biggest daily loss since last July 3, to record one-week lowest level of $ 1274.51 per ounce, within the correction processes from the four-week highest level of $ 1296.94 per ounce, as a result of the US dollar rise and the rise of US bond yields.

 

Dollar Index traded near its highest level in a week, on Tuesday, and the US currency purchase transactions has augmented against a basket of world currencies, especially against Euro, following the escalating fears in respect of the political tensions in Germany. The 10-year US bond yield held steady at 2.36% following rise of 2 base points on Monday.

 

Janet Yellen, The Federal Reserve President, said on Monday that she would resign from the board after the swearing-in of Jerome Powell as a new governor of the Central Bank, in next February.

 

Janet Yellen will have a talk later today at 2300 GMT at University of Business in New York, and is expected to give new indicators about raising the US interest rates in December meeting.

 

SPDR Gold Trust, the world’s largest gold-backed index fund, remained unchanged yesterday at 843.39 metric tons, for the fifth consecutive day.

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