Gold prices soared on Wednesday, February 15, attempting a rebound after a four-session fall, but the gains looked vulnerable as the U.S. dollar and bond yields strengthened.
April gold GCJ7, +0.11% tacked on $1.90, or 0.2%, to $1,227.30 an ounce after tapping lows under $1,218. Prices have tallied a loss of more than 1% over the past four trading sessions.
Gold traders listened closely to Tuesday’s testimony from Yellen, and “she confirmed what we have been noticing—that inflation pressures are increasing, which would warrant an acceleration of the rate hike cycle,” Nico Pantelis, head of research at Secular Investor, told MarketWatch.
The ICE U.S. Dollar Index DXY, +0.07% traded at four-week highs in the wake of Yellen’s Tuesday comments. It traded up 0.1% Wednesday after some upbeat economic data.
On the back of the reports, the 10-year Treasury yield TMUBMUSD10Y, +1.67% hit its highest in more than two weeks, dulling the appeal of gold, which doesn’t offer a yield.
On Tuesday, Yellen hinted to the Senate Banking Committee that the central bank could gradually raise interest rates sooner rather than later. Her upbeat assessment of the economy also sent investors into assets perceived as risky, such as stocks, and away from haven investments, including gold.
Other metals on Comex moved mostly higher. March silver SIH7, -0.02% rose 1.6 cents, or 0.1%, to $17.905 an ounce and March copper HGH7, +0.26% added less than a cent to $2.743 a pound.
April platinum PLJ7, -0.03% was down $1, or 0.1%, at $1,001.20 an ounce, while March PAH7, +0.47% added $1.90, or 0.2%, to $782.80 an ounce.
The exchange-traded fund SPDR Gold Trust GLD, -0.03% fell 0.1%, while the iShares Silver SLV, -0.06% fell 0.2%. The VanEck Vectors Gold Miners ETF GDX, -0.58% fell 0.8%.