Gold rose as much as 1 percent on Wednesday after Yellen indicated flexibility in raising U.S. interest rates, telling the Senate Banking Committee on Tuesday that while the Fed is preparing to consider rate hikes on a “meeting-by-meeting basis”, an increase is not likely for at least the next couple of meetings.
Yellen did not offer any additional insight on the timing of a rate increase before the House of Representatives Financial Services Committee on Wednesday.
Many in the market had expected the Fed to start raising rates by June but after Yellen’s comments, some have shifted their expectations toward the end of the year.
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