Gold price eased slightly in Asia on Thursday with remarks by Federal Reserve Chairwoman Janet Yellen being digested for hints on the timing of higher rates.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at $1,299.40 a troy ounce, down 0.03%, after hitting a session low of $1,294.10 and off a high of $1,304.30.

Yellen told Senators in a Tuesday hearing that interest rates could rise sooner rather than later if the labor market continues to improve, especially given her observations that small-cap, biotech and other momentum stock valuations appear "stretched" these days.

While she said the economy requires loose policy today, expectations for rates to rise if the labor market continues to improve sent the dollar climbing.

Gold and the dollar tend to trade inversely with one another.

The dollar also firmed on the news that U.S. wholesale prices rose more than expected in June, which capped gold's gains.

The U.S. producer price index rose by 0.4% in June from May, according to the U.S. Bureau of Labor Statistics, beating market calls for a 0.2% uptick.

Core producers prices rose 0.2%, in line with market expectations.

Elsewhere, the Federal Reserve reported that U.S. industrial output rose 0.2% in June, missing consensus forecasts for a 0.4% reading, which capped the dollar's gains.

Silver for September delivery traded at $20.793 a troy ounce, up 0.09%. Copper futures for September delivery were flat at $3.214 a pound.

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