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Gold steadies as US rate hike timing expectations ease

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Reuters SINGAPORE
Last Updated : Feb 26 2015 | 6:25 AM IST

SINGAPORE (Reuters) - Gold held above $1,200 an ounce on Thursday as recent comments from Federal Reserve chair Janet Yellen prompted some investors to push back the likely timing of a hike in U.S. interest rates.

FUNDAMENTALS

* Spot gold was up 0.1 percent at $1,205.60 an ounce by 0027 GMT.

* Gold rose as much as 1 percent on Wednesday after Yellen indicated flexibility in raising U.S. interest rates, telling the Senate Banking Committee on Tuesday that while the Fed is preparing to consider rate hikes on a "meeting-by-meeting basis", an increase is not likely for at least the next couple of meetings.

* Yellen did not offer any additional insight on the timing of a rate increase before the House of Representatives Financial Services Committee on Wednesday.

More From This Section

* Many in the market had expected the Fed to start raising rates by June but after Yellen's comments, some have shifted their expectations toward the end of the year.

* U.S. gold for April delivery rose 0.3 percent to $1,205.20 an ounce.

* New U.S. single-family home sales fell only slightly in January despite big declines in the snow-battered Northeast while supply rose to its highest level since 2010, hopeful signs for a sluggish housing market.

* For the top stories on metals and other news, click [TOP/MTL] or [GOL/]

MARKET NEWS

* The dollar nursed modest losses on Thursday after slipping for a second straight session following Yellen's recent remarks that suggested the U.S. central bank is in no rush to raise interest rates. [USD/]

* Wall Street lagged a rise in global markets on Wednesday, with the S&P 500 and the Nasdaq closing slightly lower even as energy shares gained along with a surge in oil prices. [MKTS/GLOB]

(Reporting by Manolo Serapio Jr.; Editing by Richard Pullin)

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First Published: Feb 26 2015 | 6:12 AM IST

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