Gold futures were seen trading nearly flat on Thursday, dropping from a four-month high seen in the previous session as sales in new homes in the US climbs to a five-year high and market participants focus on the Federal Reserve (Fed) Chair Janet Yellen upcoming testimony later in the day.
Gold futures for April delivery climbed 0.05% higher to $1,328.60 an ounce at the time of writing on the Comex, while silver futures slid 0.78% to $21.090 an ounce at the same time.
The US dollar index, which measures the strength of the greenback against a basket of six of its major peers, dropped 0.05%lower to 80.392.
Holdings in the world’s biggest gold-backed exchange-traded fund, SPDR Gold Trust, came at 803.7 tones on Wednesday. Market analysts’ are forecasting SPDR Gold Trust to record its first monthly rise since December 2012.
Gold is climbing for the second month in a row in February, the longest rising-streak since August.
Gold – Yellen Testimony in Focus
Meanwhile traders are focusing on the new Federal Reserve (Fed) Chair Janet Yellen to deliver her testimony on monetary policy before the Senate Banking Committee as part of the Fed’s semi-annual policy report known as Humphrey Hawkins. The testimony is due later in the day.
The US Federal Reserve reduced its monthly bond purchases by $10 billion at each of its two meetings, leaving its monthly stimulus at $65 billion. The yellow metal surged 70% from December 2008 to June 2011 as the central bank added over $4 trillion into the financial system to boost growth.
US Home Sales
Meanwhile new home sales in the US climbed to its highest in five years boosting optimism in the economy.
Sales of new homes came in at 9.6% to 468,000 units in January, climbing to the highest level since June 2008 and compared to forecasts of a 3.4% drop to 400,000 units, reports from the Department of Commerce confirmed on Wednesday.
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