Gold Declines As Yellen Hints At Rate Hike

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Gold snapped winning streak and witnessed a downtrend on Friday after the Federal Reserve Chair Janet Yellen said that there could be interest rate hikes later this year.

This statement boosted the dollar and weighed on gold sentiment. International gold was seen trading at $1,190 an ounce.

Gold Declines As Yellen Hints At Rate Hike

Earlier, gold was trading higher on the back of weak dollar and geo political tensions in Saudi and its allies boosted the demand for gold. As investors prefer to invest in gold at the time of uncertainity.

India gold following a similar trend dropped lower. Gold futures on the Multi Commodity Exchange for immedite delivery was seen trading at Rs 26,346 per 10 grams, lower by Rs 223 or 0.84 per cent. It touched an intra-day low of Rs 26,311 during the trade.

With the drop in price buying activity may increase in India due to upcoming wedding season.

Investors also eye any development in Yemen which may help gold sentiment. Last week, Saudi and its allies began military operations in Yemen after Houthi rebels forced the Yemen President to flee the country as fighting and tense moments continue.

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Read more about: gold, dollar, federal reserve
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