Gold prices fell in Asia as investors exercise caution on expectations of Fed rate hikes next year and a likely stronger dollar.
On the Comex division of the New York Mercantile Exchange, gold for January delivery fell 0.23% to $1,140.05 a troy ounce. Silver futures dipped 0.13% to $16.068 a troy ounce, while copper futures declined 0.24% to $2.496 a pound.
On Tuesday as the Bank of Japan held steady as expected and signaled a slight uptick in the economy. Earlier, the Reserve Bank of Australia on Tuesday in the minutes of its latest board meeting said it is ready to lower the cash rate again, if needed, by assessing the benefits of lower interest rates with potential risks to household balance sheets.
Overnight, gold prices for February delivery settled lower on a stronger dollar and residual sentiment on an expected three Fed rate hikes in 2017. Fed Chair Janet Yellen on Monday said she sees wage growth picking up and a healthy job market for recent college graduates.
“While I expect workers will continue to face some challenges in the coming years, I believe, … that the job prospects and career opportunities for new graduates at this time are very good,” Yellen said in remarks prepared for the University of Baltimore’s Midyear Commencement.
Yellen did not mention current monetary policy or other economic conditions in her remarks that focused on the current state of the job market facing the new graduates.