Gold Holds onto $1200 after Yellen Testimony

Gold fell to a seven-week low on Tuesday then pared losses after Federal Reserve Chair Janet Yellen said the central bank is preparing to consider interest rate hikes on a “meeting-by-meeting basis.”

Yellen said the Fed’s rate-setting policy committee will likely first remove the word “patient” in describing its approach to rate hikes, then enter a phase in which rate hikes are possible at any meeting.

Spot gold initially fell about 0.8 percent to a seven-week low of $1,190.91 per ounce as the U.S. dollar rose, then eased, down 0.1 percent to $1,199 an ounce. U.S. gold futures for April delivery settled down $3.50 an ounce at $1,197.30.


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