Gold price falls as Fed's Yellen points to rate hike; dollar jumps

New York (May 23)  Gold eased on Friday, on course for its first weekly decline in four weeks, after US Federal Reserve Chair Janet Yellen said she expected an interest rate hike this year.

 The dollar extended gains following the speech, after initially climbing on a stronger-than-expected rise in US core consumer prices in April.

 Yellen said she expected the central bank to raise rates this year as the US economy was on course to bounce back from a sluggish first quarter and as headwinds at home begin to wane.Spot gold was higher initially, fell 0.1 percent to $1205 an oz. by 3pm EST. But it was down 1.6 percent for the week.

The market was quiet ahead of public holidays on Monday (Memorial Day ) in the US and Britain.

Soucre: EconomicTimes.in