Gold futures extended rallies from the previous session in European trading hours on Wednesday, edging up to a 1-week high as market players lowered their expectations on the pace of interest rate hikes this year.
The move came after the Chairwoman of the Federal Reserve Ms. Janet Yellen put emphasis on the global dangers to inflation and growth. Therefore, Yellen said that it is important for the Fed to stay cautious on tightening the monetary policy.
On the New York Mercantile Exchange’s Comex division, Gold for June delivery added 0.21 percent or $2.60, to change hands at $1,240.10 per troy ounce by 2:58 AM ET.
During the previous day, the yellow metal surged to $1,245.20—the highest since March 23—after Yellen’s dovish remarks.
So far this 2016, gold prices have been up by almost 15 percent as market players seek safe haven assets in the face of increasing financial market instability and as concerns over a China-led global economic downturn make it more difficult for the US central bank to increase interest rates.
Meanwhile, silver futures for May delivery rose 0.8 percent or 12.2 cents to change hands at $15.35 per troy ounce during morning trading hours in New York. On the other hand, copper futures dipped 1.22 percent or 2.7 cents to hit $2.187 per pound. Copper prices plunged to a more than 1-week low of $2.182 earlier on the back of worries regarding global economic growth.