Gold lost more than 1% as a surge in assets caused by Federal Reserve Chair Janet Yellen’s dovish remarks implied higher risk, prodding some investors to capitalize on previous gains.
The Fed head’s comments, which had lifted the precious metal by almost 2%, indicated interest rates will possibly increase gradually and reassured traders, as higher rates bolster the opportunity cost of owning non-yielding assets including bullion.
Spot gold traded at $1,227.14 per ounce, down 1.2%. US gold futures closed at $1,228.60. The yellow metal, however, is still on course for its best quarter in almost 30 years as prices rose sharply earlier as woes about economic growth, specifically in China, rattled the equity markets.
The material has been provided by InstaForex Company – www.instaforex.com