On Tuesday, gold futures traded somewhat lower during European trade, while staying close to the previous session’s two-week peaks as traders kept mulling the timing of the next Fed rate lift.
Delivering a speech at the World Affairs Council of Philadelphia on Monday, Janet Yelle, Fed Chair told she was quite optimistic regarding the overall American economic outlook. She confirmed the Fed’s readiness to lift interest rates. Unfortunately, she didn’t provide any indications as for the timing of this move.
In New York, August delivery gold futures dropped 0.24%, trading at $1,244.45 per troy ounce.
Rate hike hopes, based on Fed funds futures, sagged after Yellen’s speech. As for odds for a July rate lift, they sank to from 33% to 27% before Yellen’s comments. By the way, those odds were at about 60% before the May jobs post late last week.
The U.S. dollar index, evaluating the buck’s strength against other crucial currencies, sagged 0.1%, trading at 93.93, which is close to last session’s three-week minimum of 93.74.