Investing.com - Gold prices rose on Friday as events heated up
in Ukraine, while investors digested an upbeat take on the economy
from Federal Reserve Chair Janet Yellen and concluded that despite
improvements taking place in the labor market, slackness persists,
leading investors to believe the Fed will take its time raising
On the Comex division of the New York Mercantile Exchange, gold
futures for December delivery traded at 1,281.20 a troy ounce
during U.S. trading, up 0.45%, up from a session low of $1,275.00
and off a high of $1,283.70.
The December contract settled down 1.53% at $1,275.40 on
Futures were likely to find support at $1,275.00 a troy ounce,
the session low, and resistance at $1,304.90, Monday's high.
Speaking at the Federal Reserve Bank of Kansas City's annual
Jackson Hole symposium, Janet Yellen said the U.S. economy is
recovering and added the labor market is improving as well.
"More jobs have now been created in the recovery than were lost
in the downturn, with payroll employment in May of this year
finally exceeding the previous peak in January 2008. Job gains in
2014 have averaged 230,000 a month, up from the 190,000 a month
pace during the preceding two years," Yellen said in prepared
remarks of her speech.
"The unemployment rate, at 6.2 percent in July, has declined
nearly 4 percentage points from its late 2009 peak. Over the past
year, the unemployment rate has fallen considerably, and at a
surprisingly rapid pace."
Yellen's comments sparked a rally earlier for the dollar, which
trades inversely with gold, though the yellow metal rebounded after
markets concluded that the Fed will still take its time raising
interest rates to avoid disrupting recovery.
"Underutilization of labor resources still remains significant.
Given this assessment and the Committee's expectation that
inflation will gradually move up toward its longer-run objective,
the Committee reaffirmed its view 'that it likely will be
appropriate to maintain the current target range for the federal
funds rate for a considerable time after our current asset purchase
program ends, especially if projected inflation continues to run
below the Committee's 2 percent longer-run goal, and provided that
longer-term inflation expectations remain well anchored,'" Yellen
said in prepared remarks of her speech.
Geopolitical concerns fueled safe-haven demand for gold as
Ukraine declared on Friday that Russia had launched a "direct
invasion" of its territory after Moscow sent a convoy of aid trucks
across the border into eastern Ukraine where pro-Russian rebels are
fighting government forces.
Meanwhile, silver for September delivery was down 0.09% at
$19.398 a troy ounce, while copper futures for September delivery
were up 0.95% at $3.206 a pound.
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