By Anil Mathews

ScrapMonster Author

Gold Extends Slump as Fed Rate Concerns Outweigh Haven Demand

Market Daily & Weekly

Note: Indications only, open and closing prices are bids; Data source: Bloomberg; Times as per Dubai

Fundamentals and News

Gold Extends Slump as Fed Rate Concerns Outweigh Haven Demand

Gold futures fell for a fourth session, extending the longest slide in more than two weeks, after Federal Reserve Chair Janet Yellen said more interest-rate increases will be appropriate if the U.S. economy stays on course.

Waiting too long to tighten monetary policy could mean central bankers would have to eventually raise rates rapidly, posing a risk to financial markets and the economy, Yellen told the Senate Banking Committee in prepared remarks Tuesday. While she gave no indication on the timing of the next rate hike, investors see a 34 percent chance of such a move next month, up from about 30 percent before she spoke.

Bullion has rallied more than 6 percent this year as concerns that Donald Trump’s policies on trade and immigration could derail U.S. growth boosted speculation that the Fed would be slow to raise borrowing costs. Gold wiped out gains of as much as 0.8 percent Tuesday after Yellen’s testimony.

“Yellen was hawkish, and this has impacted the price of gold,” Naeem Aslam, chief market analyst at Think Markets U.K. Ltd., said in an e-mail. “It is highly likely that the Fed may increase the rate three times this year and March meeting is very much live.”

Gold futures for April delivery settled at $1,225.40 an ounce at 1:38 p.m. on the Comex in New York, down less than 0.1 percent. The four-session decline is the longest since Jan. 27.

Data Forthcoming Releases

Courtesy: http://kalotipm.com.sg/kaloti-market-report-15th-february-2017