Gold Rises On Yellen’s Pledge To Continue Tapering

Gold hit a three-month high and global shares rose on Tuesday as investors wagered that the new head of the U.S. Federal Reserve would renew the bank’s pledge to keep policy ultra-easy at her first testimony to Congress.

Fed Chair Janet Yellen is likely to face questions on the state of the labor market and the future pace of tapering when she appears before the House Financial Services Committee at 10.00 a.m. ET. Her testimony will be released at 8.30 a.m. ET.

Dealers said the latest betting was that while the tone was likely to be upbeat on the economy, Yellen would emphasize that interest rates were set to remain near zero for some time.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza