Will geopolitical uncertainty contribute to volatility in the dollar and gold in 2014?
*Reuters, by Clara Denina, March 31, 2014
‘Gold was little changed on Monday, trading close to a six-week low and headed for its first monthly decline this year as improving prospects for the U.S. economy eroded investment interest and aroused an appetite for riskier assets.
Bullion prices have lost around $100 an ounce in the last 10 trading sessions from a six-month high hit in mid-March, on declining geopolitical tensions, stronger U.S. economic releases and comments by Federal Reserve Chair Janet Yellen earlier this month that interest rates could rise in the first half of 2015.
Spot gold was flat at $1,292.54 an ounce by 1437 GMT, having touched $1,285.34, its lowest level since Feb. 12, on Friday. It was down 2.5 percent for the month.
Gold futures for April delivery fell $0.70 to $1,293.50 an ounce.
The dollar was down 0.2 percent against a basket of currencies, while 10-year U.S. Treasury yields rose above 2.7 percent, underpinned by expectations that the Federal Reserve will continue to taper its massive stimulus programme and pave the way for an eventual rate increase.
In her first public speech since becoming Fed chair two months ago, however, Janet Yellen on Monday strongly defended the central bank’s policies of low interest rates and continued bond-buying.”
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