Gold Climbs from Seven-day Low to Hit $1,205.05

Precious Metals

After hitting a seven-day low on Tuesday, gold bounced back 0.5 percent to reach $1,205.05 an ounce.

After hitting a seven-day low on Tuesday, gold bounced back 0.5 percent on Wednesday to reach $1,205.05 an ounce, according to Reuters. Meanwhile, US gold futures for April delivery were up as well, having increased $7.80 an ounce to hit $1,205.10.

The jumps came after Federal Reserve Chair Janet Yellen announced the central bank isn’t in a rush to raise interest rates. Yellen said the Fed will consider rate hikes on a “meeting-by-meeting basis,” but an increase is not likely to happen in the next couple meetings.

That said, Natixis (EPA:KN) analyst Bernard Dahdah told Reuters that gains in gold will probably be limited, and he still expects to see the Fed hike rate in June. “I don’t think (what Yellen said) was as clear cut as saying, we’re not going to have any interest rate rise any time soon,” Dahdah said. “That’s probably why the price of gold is up, but it’s still in the range it was.”

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