Gold Prices Climb as Yellen Sees Labor Market Slack

Friday, 22 Aug 2014 03:50 PM

 

  Comment  |
   Contact  |
  Print  
|  A   A  
  Copy Shortlink

Gold rose for the first time in more than a week after Federal Reserve Chair Janet Yellen said slack remains in the labor market, easing concern that the central bank is ready to increase interest rates.

Yellen underscored the Federal Open Market Committee statement last month that “underutilization of labor resources still remains significant.” She spoke at the Kansas City Fed’s annual economics conference in Jackson Hole, Wyoming. Gold fell to a two-month low as minutes of the Fed’s last meeting released this week signaled that policy makers may raise interest rates earlier than expected.

“They’re trying to bluff the market,” Tom Winmill, who helps manage about $220 million of assets in Walpole, New Hampshire, for Midas Funds, said. “They’re trying to warn investors about the potential for rate increases, without actually implementing a rate increase. I think that will strengthen the trading range for gold.”

Bullion futures more than doubled from December 2008 to a record $1,923.70 an ounce in September 2011 as the Fed purchased debt and cut rates to an all-time low to spur economic growth. Prices slid 28 percent last year as the global expansion accelerated and policy makers started reducing bond buying. The metal has risen 6.5 percent this year, partly as unrest in Ukraine and the Middle East increased haven demand.

Gold futures for December delivery rose 0.4 percent to settle at $1,280.20 an ounce at 1:46 p.m. on the Comex in New York. The metal yesterday dropped to $1,273.40, the lowest since June 18. Price slid 2 percent this week, for a second straight weekly decline.

Fed Minutes

Many U.S. policy makers raised the possibility they may boost rates sooner than anticipated, minutes of the Fed’s July meeting showed Aug. 20.

Prices also advanced after Valentyn Nalyvaychenko, the head of Ukraine’s security council, told TV5 that Russia was invading under the cover of a convoy it says was carrying humanitarian aid. More than 200 trucks from Russia entered the country without a Red Cross escort through a checkpoint in a rebel-held area and headed for Luhansk, according to a Bloomberg reporter on the scene.

Silver futures for December delivery slid 0.1 percent to $19.459 an ounce on the Comex, capping a sixth straight weekly loss, the longest string of declines since April 2013.

On the New York Mercantile Exchange, platinum futures for October delivery slipped 0.1 percent to $1,418.50 an ounce, an eighth straight decline and the longest slump since July 2008. Prices fell for a second straight week.

Palladium futures for September delivery gained 0.9 percent to $887.60 an ounce.

© Copyright 2014 Bloomberg News. All rights reserved.

  Comment  |
   Contact  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Stocks Crawl to Record Close Ahead of Thanksgiving Holiday

Wednesday, 26 Nov 2014 17:12 PM

The U.S. stock market inched upward to another record close on Wednesday ahead of the Thanksgiving holiday as investors  . . .

Harvard's Feldstein: Low Oil Prices Help US as Iran, Russia Suffer

Wednesday, 26 Nov 2014 16:30 PM

Harvard economist Martin Feldstein says "the low price of oil is good news for the United States economy, because it imp . . .

OPEC Heading for No Output Cut Despite Oil Price Plunge

Wednesday, 26 Nov 2014 16:13 PM

OPEC Gulf oil producers will not propose an output cut on Thursday, reducing the likelihood of joint action by OPEC to p . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved