Gold futures rebounded from a seven-week low after Federal Reserve Chair Janet Yellen signaled an interest-rate increase isn™t imminent. Palladium climbed to the highest in almost six weeks.
Yellen, testifying to the Senate Banking Committee on Tuesday, indicated that a change in the Fed™s guidance on borrowing costs won™t lock the central bank into a timetable. Higher interest rates curb gold™s appeal because the metal generally gives returns only through price gains.
Gold has increased 1.5 percent this year as signs of an economic slowdown in China and turmoil over Greece™s debt boosted demand for haven assets. While the U.S. labor market is improving, inflation is below the Fed™s goal and wage growth is œsluggish, Yellen said Tuesday. She testified in the House of Representatives Wednesday.
Gold futures for April delivery rose 0.4 percent to settle at $1,201.50 an ounce at 1:47 p.m. on the Comex in New York. The metal fell to $1,190 on Tuesday, the lowest since Jan. 5, before paring losses after Yellen spoke to Congress.