By Stephanie Yang
Gold prices rose Thursday as investors assessed comments from Federal Reserve Chairwoman Janet Yellen to gauge the strength of the U.S. economy and the path for future interest rate increases.
Gold for December delivery was recently up 0.2% at $1,226.10 a troy ounce on the Comex division of the New York Mercantile Exchange.
On Thursday, Ms. Yellen said that a rate increase "could well become appropriate relatively soon," in a prepared testimony.
The market largely expects the central bank to raise rates at the next policy meeting in December.
"[Gold]'s got a little bit of life behind it, but there's not a lot of strong conviction,"said Bob Haberkorn, senior market strategist at RJO Futures.
"Her comments weren't overly hawkish," he noted on the prepared remarks from Ms. Yellen.
The precious metal sold off following the U.S. presidential election, as investors grew optimistic about economic growth under a Trump presidency, and the flight to safe-haven assets slowed. Analysts also note that with many traders expecting a December rate increase, the impact to gold prices is likely already priced in.
Gold pays its holders nothing, so it struggles to compete with yield-bearing assets like Treasurys when borrowing costs rise.
Write to Stephanie Yang at firstname.lastname@example.org
(END) Dow Jones Newswires
November 17, 2016 11:09 ET (16:09 GMT)
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