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Gold futures traded little changed after the Federal Reserve Janet Yellen failed to allay fears that US interest rates will rise. Yellen noted that "the rate increase will be possible in the course of any meeting after the statements of the Central Bank of intensions undergo appropriate changes." Next Yellen said that the Fed will raise rates when inflation is confident, adding that in the short term, inflation may fall. She also reported that the updated statement of intent will not necessarily mean that the presence of the word "patience" makes it impossible to increase rates over the next couple of meetings.
Recall, gold is under pressure in recent weeks amid lingering expectations that this year the Federal Reserve will raise interest rates. Expectations rise in interest rates has a negative impact on the dynamics of the price of gold, because it can not compete with earning assets at high rates.
Had little impact as US data. One report showed that the preliminary PMI index reached 57.0 in February, up from 54.2 in January. In the prior index is about 85% off the regular monthly responses. The result underlined the fastest growing activity since October last year. In addition, the last reading was generally in line with the average, which was observed during 2014 (57.1). Higher levels of business activity in the services sector have been caused by a strong rebound in new orders in February. The growth of new business rose from a record low of January survey, and was the strongest in four months. Reports of the respondents suggest that the increase in underlying economic conditions has increased the demand from customers.
Meanwhile, in another report, it was reported that the index of US consumer confidence fell in February to a level of 96.4 points against 103.8 points in January (revised from 102.9 points). Economists had expected the index to decline to 99.6 points. The expectations index fell to 87.2 in February from 97.0 in January, as the proportion of consumers is expected to improve business conditions in the next six months, fell to 16.1 percent from 18.9 percent. Meanwhile, the number of pending deteriorating business conditions rose to 8.7 percent from 8.2 percent. Also, consumers were less optimistic about the prospects for the labor market - an indicator that assesses opinion on changes in the number of new jobs in the coming months, fell to 13.4 percent from 17.3 percent. In the Conference Board also said that the assessment of current conditions was less favorable - the index fell in February to 110.2 from 113.9 in January. The proportion of consumers who believe that business conditions are "good" fell to 26.0 percent from 28.2 percent, while the number of reporting to the contrary decreased to 17.0 percent from 17.3 percent.
April futures price of gold on the COMEX today fell to 1198.20 dollars per ounce.
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