Gold Prices Slide Towards 5-Week Lows on Yellen's Hawkish Tone
Gold prices extended losses from the prior session on Wednesday, as hawkish comments from Federal Reserve Chair Janet Yellen boosted expectations of a December rate hike.
Comex gold futures were at $1,294.45 a troy ounce by 3:10AM ET (0710GMT), down $7.30, or around 0.6% from Tuesday's closing price.
The yellow metal lost around 1% on Tuesday after Yellen said the Fed needs to continue gradual rate hikes despite broad uncertainty about the path of inflation.
The U.S. central bank last week announced it would begin trimming down its $4.5 trillion in assets and signaled it will likely raise rates again before the end of this year.
Interest rate futures are now pricing in about an 80% chance of a December Fed rate hike according to Investing.com's Fed Rate Monitor Tool, up from under 40% just a few weeks ago.
The U.S. dollar and bond yields jumped on her remarks, dampening the appeal of bullion.
The dollar index, which tracks the greenback's strength against a basket of six major currencies, rose to 93.13, its highest level in almost a month.
Looking ahead, investors awaited headlines on U.S. tax reform, which is expected to be unveiled on Wednesday U.S. time.
The plan has been developed over several months by six White House and congressional Republicans working behind closed doors and with no input from Democrats.
Republicans, who control the White House and both chambers of Congress have been unable to deliver a significant legislative win on any topic since Trump took office in January.
Elsewhere on the Comex, silver futures inched down 5.0 cents, or about 0.3%, to $16.82 a troy ounce.
Source: UK Investing.com