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PRECIOUS-Gold up again as Yellen comments support Fed stimulus
November 14, 2013 / 11:11 AM / 4 years ago

PRECIOUS-Gold up again as Yellen comments support Fed stimulus

* Yellen says imperative to promote very strong recovery
    * Better equities, stronger dollar could pressure gold
    * SPDR Gold Trust holdings down for 1st time nearly 2 weeks
    * Coming up: US import, export data, industrial output Fri.

    By Frank Tang and Clara Denina 
    NEW YORK/LONDON, Nov 14 (Reuters) - Gold rose for a second
session on Thursday, after the nominee for Federal Reserve
chairman, Janet Yellen, defended the U.S. central bank's bold
steps to spur growth, suggesting the massive bond-buying
stimulus will continue.
    Answering questions before the Senate Banking Committee,
Yellen made plain she would press forward with the Fed's
ultra-easy monetary policy until officials were confident a
durable economic recovery was in place that could sustain job
    "The possibility of continued tapering and Yellen's comment
about the importance not to pull the plug too early is initially
support of gold," said Thomas Power, senior commodity broker at
futures brokerage RJO Futures.
    "In the long run, I think it's somewhat bearish for gold
prices as the equities are going to continue to rally off this
news," Power said.
     Spot gold was up 0.4 percent at $1,284.06 an ounce
by 2:23 p.m. EST (1923 GMT), after snapping a four-day losing
streak on Wednesday with a gain of nearly 1 percent.
    U.S. gold futures for December delivery settled up
$17.90 at $1,286.30 an ounce, with trading volume about 10
percent below its 250-day average, preliminary Reuters data
    Another analyst said a resurgent dollar could also weigh
down on gold prices.
    "I expect the dollar to keep rising in the next few weeks
and this rebound of gold to be temporary, because if the economy
improves, the opportunity cost of holding gold would increase,"
Natixis analyst Bernard Dahdah said.
    In another gauge of investor sentiment, outflows from SPDR
Gold Trust, the world's biggest gold-backed
exchange-traded fund, resumed on Wednesday after pausing the
previous two weeks. Holdings in the fund fell 2.71 tonnes to a
fresh four-year low of 865.71 tonnes. 
    The World Gold Council cut its outlook for Indian demand in
2013 to around 900 tonnes from the 1,000 tonnes predicted
previously as strict import rules introduced by New Delhi bite,
while keeping its forecast for China unchanged at 1,000 tonnes.
    Among other precious metals, silver rose 0.6 percent
to $20.70 an ounce. Platinum was up 0.8 percent at
$1,441.49 an ounce, while palladium rose 0.8 percent to
$735.97 an ounce.
 2:23 PM EST     LAST/    NET   PCT      LOW    HIGH  CURRENT
                SETTLE   CHNG  CHNG                       VOL
 US Gold DEC   1286.30  17.90   1.4  1277.30 1293.80  145,012
 US Silver DEC  20.722  0.280   1.4   20.570  20.885   50,799
 US Plat JAN   1444.10  12.10   0.8  1434.10 1457.90    8,953
 US Pall DEC    739.80   4.35   0.6   732.95  741.80    5,574
 Gold          1284.06   5.45   0.4  1279.03 1294.00         
 Silver         20.700  0.120   0.6   20.620  20.890
 Platinum      1441.49  10.75   0.8  1434.50 1453.49
 Palladium      735.97   6.00   0.8   735.39  740.25
                CURRENT   250D AVG   CURRENT     CHG
 US Gold        162,373    189,283     23.18   -1.01
 US Silver       65,731     58,610     35.14    1.70
 US Platinum      9,129     12,978     20.36    0.00
 US Palladium     8,361      5,806

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