By Kaya Yurieff
NEW YORK: Shares of Yamana Gold (AUY) were lower in mid-afternoon trading on Friday as gold prices moved between gains and losses following Federal Reserve Chair Janet Yellen's speech today.
Yellen said the case for hiking interest rates has strengthened, but rate increases should be gradual, Reuters reports.
"In light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal-funds rate has strengthened in recent months," she said in prepared comments.
Gold does not pay interest and struggles to compete with assets that offer a yield when interest rates are increased.
Earlier, the price of the metal jumped, while the dollar fell initially after Yellen's speech. Gold is more expensive to foreign currency holders when the greenback is strong.
The dollar is rising this afternoon.
For December delivery, gold was recently up 0.13% to $1,326.30 per ounce on the COMEX this afternoon.
Toronto-based Yamana is a gold and copper exploration company that operates seven mines and oversees several ongoing development projects in Brazil, Argentina and Chile.