By Frank Tang and Clara Denina
NEW YORK/LONDON, Nov 14 (Reuters) - Gold rose for a second
session on Thursday, after the nominee for Federal Reserve
chairman, Janet Yellen, defended the U.S. central bank's bold
steps to spur growth, suggesting the massive bond-buying
stimulus will continue.
Answering questions before the Senate Banking Committee,
Yellen made plain she would press forward with the Fed's
ultra-easy monetary policy until officials were confident a
durable economic recovery was in place that could sustain job
'The possibility of continued tapering and Yellen's comment
about the importance not to pull the plug too early is initially
support of gold,' said Thomas Power, senior commodity broker at
futures brokerage RJO Futures.
'In the long run, I think it's somewhat bearish for gold
prices as the equities are going to continue to rally off this
news,' Power said.
Spot gold was up 0.4 percent at $1,284.06 an ounce
by 2:23 p.m. EST (1923 GMT), after snapping a four-day losing
streak on Wednesday with a gain of nearly 1 percent.
U.S. gold futures for December delivery settled up
$17.90 at $1,286.30 an ounce, with trading volume about 10
percent below its 250-day average, preliminary Reuters data
Another analyst said a resurgent dollar could also weigh
down on gold prices.
'I expect the dollar to keep rising in the next few weeks
and this rebound of gold to be temporary, because if the economy
improves, the opportunity cost of holding gold would increase,'
Natixis analyst Bernard Dahdah said.
In another gauge of investor sentiment, outflows from SPDR
Gold Trust, the world's biggest gold-backed
exchange-traded fund, resumed on Wednesday after pausing the
previous two weeks. Holdings in the fund fell 2.71 tonnes to a
fresh four-year low of 865.71 tonnes.
The World Gold Council cut its outlook for Indian demand in
2013 to around 900 tonnes from the 1,000 tonnes predicted
previously as strict import rules introduced by New Delhi bite,
while keeping its forecast for China unchanged at 1,000 tonnes.
Among other precious metals, silver rose 0.6 percent
to $20.70 an ounce. Platinum was up 0.8 percent at
$1,441.49 an ounce, while palladium rose 0.8 percent to
$735.97 an ounce.
2:23 PM EST LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold DEC 1286.30 17.90 1.4 1277.30 1293.80 145,012
US Silver DEC 20.722 0.280 1.4 20.570 20.885 50,799
US Plat JAN 1444.10 12.10 0.8 1434.10 1457.90 8,953
US Pall DEC 739.80 4.35 0.6 732.95 741.80 5,574
Gold 1284.06 5.45 0.4 1279.03 1294.00
Silver 20.700 0.120 0.6 20.620 20.890
Platinum 1441.49 10.75 0.8 1434.50 1453.49
Palladium 735.97 6.00 0.8 735.39 740.25
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 250D AVG CURRENT CHG
US Gold 162,373 189,283 23.18 -1.01
US Silver 65,731 58,610 35.14 1.70
US Platinum 9,129 12,978 20.36 0.00
US Palladium 8,361 5,806
(Editing by Marguerita Choy and Andrew Hay)
Keywords: MARKETS PRECIOUS/
(Frank.Tang@thomsonreuters.com)(+1 646 223 6126)(Reuters Messaging: firstname.lastname@example.org)
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