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Gold Touches One-Month Low as Fed Rate Speculation Mounts

  • Three Fed officials have appearances scheduled for Wednesday
  • Investors sell holdings in gold-backed exchange-traded funds
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Gold Hovers at One-Month Lows

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Gold touched a one-month low after Federal Reserve Chair Janet Yellen told a congressional hearing that a move on interest rates in December is a “live possibility” if economic data hold up.

While no decision on rates have been made, policy makers expect the economy will continue to grow at a pace that justifies gradual tightening in monetary policy, Yellen said at a hearing of the House Financial Services Committee on Wednesday. Investors boosted the odds of a December rate increase to 60 percent, 10 percentage points higher than Tuesday. Higher rates curb gold’s appeal because it doesn’t pay interest.