Yellen's Comments Weigh on Gold Sentiment

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International gold was weighed by Yellen's comments on raising interest rates in 2015 on hopes that US economy will bounce back.

The dollar rose against a basket of currencies to one-month high after the Federal Reserve indicated the hike in interest rates in coming days.

Check today's gold rates in various cities here.

Yellen's Comments Weigh on Gold Sentiment

Stronger dollar weighs on the gold sentiment as it makes the yellow metal expensive for other currency holders.

Higher interest rates will dampen the gold sentiment as it will shift the focus to other riskier assets.

Further news on a hike in interest rate will reduce gold appeal as a safe haven and boost the dollar sentiment.

International gold dropped 3 per cent last week and was seen trading at $1,201 an ounce.

On the Multi Commodity Exchange, gold futures for latest delivery was seen trading flat at Rs 27,100 per 10 grams at 3.20 PM IST.

In India, spot gold increased on buying activity from jewellers and retailers after two days of losses.

Read more about: gold, dollar
Story first published: Monday, May 25, 2015, 16:04 [IST]
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