Gold Silver Reports — Gold prices pared losses during later half on Tuesday as investors contemplated the likelihood that the Federal Reserve would raise interest rates in the coming months.
Fed Chairwoman Janet Yellen Addressing a luncheon audience at a World Affairs Council event in Philadelphia, omitted any reference to the timing of the Fed’s next interest rate hike.. The speech followed a dismal May jobs report on Friday, which boosted gold prices and derailed expectations that the Fed may raise rates at the June policy meeting.
Gold has rallied somewhat from a prolonged slump late last month when the yellow metal briefly dipped below $1,200 to fall to a three-month trough. Since the start of the year, gold futures are still up by approximately 15% holding onto gains from the strongest first quarter of a year in more than a decade. Yellen’s stance represented a shift from her position less than two weeks ago when she sent strong indications that the Fed appeared ready to resume tightening of its monetary policy cycle.
Yellen’s comments have done little to sway market sentiments. The market sees virtually no chance of a rate hike next week when the FOMC convenes for the two-day meeting on June 14-15. The current probability of a June rate hike fell to 1.9% on Tuesday from 3.8% during the previous day. — Neal Bhai Reports