Gold hovered near its lowest level since March on Thursday after Federal Reserve Chair Janet Yellen reiterated that a U.S. interest rate increase is likely this year, buoying the dollar at bullion’s expense.
Yellen said the U.S. central bank remains on course to raise interest rates this year, with labor markets expected to steadily improve and turmoil abroad unlikely to throw the U.S. economy off track.
Yellen’s comments were in line with her recent remarks along with the most recent policy statement by the Federal Open Market Committee, which will meet next on July 28-29. Yellen is expected to repeat those comments when she testifies before the Senate Banking Committee on Thursday.
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