MTECHTIPS;- Gold jumps to session highs as Yellen signals gradual rate hikes ahead


MTECHTIPS;- Gold jumps to session highs as Yellen signals gradual rate hikes ahead

MTECHTIPS-Gold prices rose to the highest levels of the session in North American trade on Wednesday, as traders digested prepared remarks from Federal Reserve Chair Janet Yellen. Comex gold futures were at $1,223.24 a troy ounce by 9:05 AM ET (1305 GMT), up $8.90, or around 0.7%, after touching a session peak of $1,224.93. Prices settled with a modest gain for a second-straight session on Tuesday. In prepared remarks released before her testimony to the House Financial Services committee, Yellen said the Fed remains on track to both raise interest rates and begin shrinking its balance sheet before the end of the year, despite low inflation. She added that the rate increases and balance sheet reduction would be gradual. The Fed hiked rates at its June meeting and stuck to its forecast for one more rate hike this year, but the subdued inflation outlook has since raised doubts over whether the U.S. central bank will be able to stick to its planned tightening path. Futures traders are pricing in around a 40% chance of a hike by the end of the year, according to Investing.com’s Fed Rate Monitor Tool

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