Gold Slumps for Second Session After Yellen Hints at Early Rate Hike (GLD) (IAU)
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Gold is lower again Thursday after recording its largest one-day loss since last January on Wednesday's session.
Prices for the precious metal slipped lower following commentary from Fed chair Janet Yellen, who hinted that interest rates could move higher sooner than expected. Yellen said the Fed might end its bond-buying program this fall and raise rates within six months.
Gold prices fell 1.8 percent yesterday as the U.S. dollar rose in concert with the comments. Prices for the metal increased in recent years to record highs as investors weighed the opportunity cost associated with hanging on to the non-yielding commodity versus other assets.
Shares of SPDR Gold Trust (NYSE: GLD) and iShares Gold Trust (NYSE: IAU) are modestly lower Thursday. Gold April contracts are down $12.1 to $1,329.2 per ounce on the COMEX.
Prices for the precious metal slipped lower following commentary from Fed chair Janet Yellen, who hinted that interest rates could move higher sooner than expected. Yellen said the Fed might end its bond-buying program this fall and raise rates within six months.
Gold prices fell 1.8 percent yesterday as the U.S. dollar rose in concert with the comments. Prices for the metal increased in recent years to record highs as investors weighed the opportunity cost associated with hanging on to the non-yielding commodity versus other assets.
Shares of SPDR Gold Trust (NYSE: GLD) and iShares Gold Trust (NYSE: IAU) are modestly lower Thursday. Gold April contracts are down $12.1 to $1,329.2 per ounce on the COMEX.
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