Gold futures on the COMEX division of the New York Mercantile Exchange declined Tuesday after Federal Reserve chief signaled another possible interest rate hike later this year.
The most active gold contract for December delivery fell 9.80 dollars, or 0.75 percent, to settle at 1,301.70 dollars per ounce.
U.S. Federal Reserve Chair Janet Yellen said early Tuesday that it's appropriate for the central bank to continue gradually tighten its monetary policy despite of the uncertainties over inflation.
"A gradual approach is particularly appropriate in light of subdued inflation and a low neutral real interest rate, which imply that the FOMC (Federal Open Market Committee) will have only limited scope to cut the federal funds rate should the economy be hit with an adverse shock," Yellen was quoted as saying at the annual meeting of the National Association for Business Economics.
Yellen's remarks reinforced expectations for another key rate increase by the end of this year.
The U.S. dollar index posted an increase of 0.40 percent to reach 93.04 as of 1820 GMT. The index is a measure of the dollar against a basket of other major currencies. When the dollar goes up, gold futures will fall.
As for other precious metals, silver for December delivery dropped 26.4 cents, or 1.54 percent, to close at 16.883 dollars per ounce. Platinum for October plunged 15.50 dollars, or 1.65 percent, to settle at 924.70 dollars per ounce.
The most active gold contract for December delivery fell 9.80 dollars, or 0.75 percent, to settle at 1,301.70 dollars per ounce.
U.S. Federal Reserve Chair Janet Yellen said early Tuesday that it's appropriate for the central bank to continue gradually tighten its monetary policy despite of the uncertainties over inflation.
"A gradual approach is particularly appropriate in light of subdued inflation and a low neutral real interest rate, which imply that the FOMC (Federal Open Market Committee) will have only limited scope to cut the federal funds rate should the economy be hit with an adverse shock," Yellen was quoted as saying at the annual meeting of the National Association for Business Economics.
Yellen's remarks reinforced expectations for another key rate increase by the end of this year.
The U.S. dollar index posted an increase of 0.40 percent to reach 93.04 as of 1820 GMT. The index is a measure of the dollar against a basket of other major currencies. When the dollar goes up, gold futures will fall.
As for other precious metals, silver for December delivery dropped 26.4 cents, or 1.54 percent, to close at 16.883 dollars per ounce. Platinum for October plunged 15.50 dollars, or 1.65 percent, to settle at 924.70 dollars per ounce.
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