|
CHICAGO, Feb. 13 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange fell on Monday as traders prepared their positions for Federal Reserve Chairwoman Janet Yellen's speech on Tuesday.
The most active gold contract for March delivery fell 10.1 U.S. dollars, or 0.82 percent, to settle at 1,225.80 dollars per ounce.
Traders spent Monday reconfiguring their positions ahead of Janet Yellen's speech on monetary policy testimony before the Senate Banking Committee which will likely give hints on the next rate hike.
Investors believe the Fed may raise rates from 0.75 to 1.00 during the May FOMC meeting at the earliest. According to the CME Group's Fedwatch tool, the current implied probability of a hike from 0.50 to at least 0.75 is at 18 percent at the March meeting and 37 percent for the May meeting.
Gold was also put under extensive pressure as the U.S. Dow Jones Industrial Average rose by 157.14 points, or 0.78 percent, as of 1815 GMT. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.
The U.S. Dollar Index remained mostly unchanged, falling by 0.01 percent to 100.96 as of 1815 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.
Traders looking to this week for the producer price index report and the aforementioned Janet Yellen speech on Tuesday. The consumer price index, retail sales report, and industrial production report are expected on Wednesday. Housing starts, jobless claims, and Philadelphia Fed business outlook survey will be released on Thursday.
Silver for March delivery dropped 11.2 cents, or 0.62 percent, to close at 17.821 dollars per ounce. Platinum for April delivery fell 11.4 dollars, or 1.13 percent, to close at 1,000.30 dollars per ounce.
