Gold rebounded from the lowest level in seven weeks and silver rose after Federal Reserve Chair Janet Yellen signaled an interest-rate increase isn™t imminent. Palladium climbed to the highest in six weeks.
Yellen, testifying to the Senate Banking Committee on Tuesday, indicated that a change in the Fed™s guidance on interest rates won™t lock the central bank into a timetable for tightening. Higher interest rates curb gold™s appeal because the metal generally gives returns only through price gains.
Gold for April delivery rose as much as 1.2 percent to $1,211.70 an ounce and traded at $1,209.50 at 8:05 a.m. on the Comex in New York, rebounding from three days of losses. Bullion dropped to as low as $1,190 an ounce on Tuesday, the lowest price since Jan. 5.
Prices may get a boost from buyers in China, who returned from a week-long holiday on Wednesday, Howie Lee, an investment analyst at Phillip Futures Pte, wrote in a note.
Silver for May delivery climbed 2.5 percent to $16.64 an ounce.
Source : Bloomberg