Oh, Gold! Down to three-week lows after Yellen comments
Down again gold went on Thursday, hitting three-week lows after posting its steepest one-day fall since late January in the previous session, as investors continue to process the US Federal Reserve’s head comments on how interest rates could rise sooner than expected.
Markets seem to have interpreted Janet Yellen’s remarks as impending rate hikes as early as early 2015.
Spot gold extended losses this morning to $1,325.34 an ounce, its lowest since late February. It was down 0.3 percent at $1,327.10 an ounce at 1017 GMT, while US gold futures for April delivery were down $13.60 an ounce at $1,327.70.
The gold price has been sinking this week after the situation in Ukraine simmered, lowering demand for gold as a safe-haven asset. The sharp drop is inconsistent with steady gains seen since the beginning of the year.