Gold prices are up 17% year to date
by Sue Chang and Rachel Koning Beals
Gold futures snapped a three-session losing streak to settler higher Tuesday after Federal Reserve Chairwoman Janet Yellen stressed that the central bank will be cautious on any future interest rate hikes, quashing speculation that the Fed could raise rates as early as April.
June gold advanced $15.50, or 1.3%, to settle at $1,237.50 an ounce. The SPDR Gold Trust added 1.6%.
Yellen’s dovish tone hurt the U.S. dollar as rising interest rates bolster the U.S. currency at the expense of metals that don’t bear interest, including gold and other dollar-priced commodities.
The U.S. Dollar Index a measure of the buck against six rivals, slid 0.8% to 95.19 Tuesday.