By Myra P. Saefong and Rachel Koning Beals
Gold and silver futures moved modestly higher Tuesday, rebounding from back-to-back price declines as a depreciating dollar gave the metals reason to rise as traders await a speech by Federal Reserve Chairwoman Janet Yellen due later this week.
Shifting expectations about the Federal Reserve’s interest-rate policy ahead of a closely watched retreat in Jackson Hole, Wyo., where Yellen will speak on Friday, have resulted in small gyrations in the greenback.
December gold GCZ6, +0.01% gained $3.50, or 0.3%, to $1,346.90 an ounce. Prices fell Friday and Monday after a nearly flat finish for all of last week.
The dollar slipped against most major currencies Tuesday. The ICE Dollar Index DXY, -0.13% eased 0.1% to 94.39, after ending almost near break-even on Monday. Gold’s potential upside Tuesday could be limited, however, as investors sniffed out potential opportunities in the traditionally riskier stock market; stocks headed higher despite a slide for oil.
The Jackson Hole event is the week’s main event, in part thanks to a fairly light economic lineup including another estimate of gross domestic policy and consumer sentiment slated for Friday.
Investors are expected to parse Yellen’s speech for clues on the near-term fate of interest rates. The debate over the odds—still relatively slim according to CME Group short-term rate futures pricing—for a typically dollar-positive and gold-negative rate increase yet this year continue to intensify.