By Joe Deaux
Gold headed for the biggest gain in more than three weeks after Federal Reserve Chair Janet Yellen said that while the case for an interest-rate hike has strengthened recently, a gradual increase will be appropriate “over time.”
“It seems like there is some sort of building consensus to a rate hike, but not imminent,” according to George Gero, a managing director at RBC Wealth Management in New York. Her remarks are “pointing more toward December than September as they await more data,” he said in a telephone interview.
Yellen said the case to raise interest rates is getting stronger as the U.S. economy approaches the central bank’s goals. The economy is “nearing” the Fed’s goals of full employment and stable prices, she said in the text of a speech Friday to central bankers and economists in Jackson Hole, Wyoming. The Fed chair didn’t discuss the specific timing of a rate move in her first public comments since June.
Gold futures for December delivery rose 0.8 percent to $1,335.40 an ounce at 10:52 a.m. on the Comex in New York. A close at that price would mark the biggest advance since Aug. 2. Gold initially fell after her remarks.