Gold prices fell further Wednesday, extending multi-week lows after Federal Reserve Chair Janet Yellen confirmed that a December rate hike is on the table.
Dec. gold lost $7.90, or 0.7%, to settle at $1,106.20/oz, the fifth straight decline and the lowest settlement since mid-September.
“We have a recovering economy….households are in better shape,” Yellen told a House Financial Services panel.
A December rate hike remains a possibility despite signs the economy is slowing for the third winter in a row.
“If the incoming information supports that expectation, then or statement indicates that December would be a live possibility,” she said.
Private sector employment in the U.S. increased roughly in line with economist estimates in the month of October, according to a report released by payroll processor ADP on Wednesday.
The report said the private sector added 182,000 jobs in October following a downwardly revised increase of 190,000 jobs in September.
The material has been provided by InstaForex Company – www.instaforex.com