• Gold futures climbed after Federal Reserve Chair Janet Yellen suggested early Wednesday the U.S. economy remains strong enough for more rate hikes but also said they may not have to rise much more, traders said.
• As of 9:23 a.m. EDT, Comex August gold was $7.60 higher to $1,222.30 an ounce.
• The Fed chief’s remarks were in prepared testimony delivered ahead of an appearance before the House Financial Services Committee, scheduled for 10 a.m. EDT.
• Gold prices tallied a third-straight gain Wednesday, maintaining their short-term boost from political uncertainty in the U.S., as the Federal Reserve Janet Yellen’s reiterated a call for ‘gradual’ interest-rate hikes in Capitol Hill testimony.
• Gold for August delivery GCQ7, -0.10% rose $4.40, or 0.4%, to settle at $1,219.10 an ounce. Prices have been posting gains since a solid U.S. jobs report issued late last week, which backed the argument for higher interest rates, contributed to a drop in gold prices Friday to their lowest level in about four months.
• Analysts said the precious metal has found support as a haven investment amid turmoil in the White House following Donald Trump Jr.’s release of emails linked to a meeting with a Russian Lawyer last year.
• The Trump news “is the only factor that is supporting gold,” said Chintan Karnani, chief market analyst at Insignia Consultants. “Gold prices would have crashed but for [the] Trump-related news.”
• “The rise in gold prices also prompted short covering as it did not fall below $1,200,” he said. He also pointed out that gold initially fell after Yellen’s press statement Wednesday, before moving higher.
• “I have said in my earlier report this week that I am expecting an October interest rate hike if U.S. jobs maintain the current pace of growth,” said Karnani.
• Meanwhile, Karnani noted that gold’s 200-day moving average is at $1,225.30. Unless “gold breaks and trades” over that level, “upside will be limited.”
• For now, other metals finished broadly higher on Comex. Silver for September SIU7, -0.04% rose 14.2 cents, or 0.9%, to $15.887 an ounce.
Reference: Kitco, Market Watch
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