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Gold falls on Yellen's assessment of economy

Published on NewsOK Modified: May 7, 2014 at 3:35 pm •  Published: May 7, 2014

Gold is falling after Federal Reserve Chair Janet Yellen gave an upbeat assessment of the U.S. economy and said that inflation remains low.

The price of gold for delivery in June fell $19.70, or 1.5 percent, to $1,288.90 an ounce.

Yellen's comments suggest that the Federal Reserve is set to continue reducing its economic stimulus, lessening the threat of rising prices. Investors typically buy gold as a hedge against inflation. Gold also gained after Russia pulled back its troops from the Ukrainian border, potentially reducing tensions in the region.

"It's not been a good day for those that believe in gold ownership," said George Gero, vice president of global futures RBC Capital Markets in New York.

Other metals also fell.

Silver for July delivery fell 30 cents, or 1.5 percent, to $19.34 an ounce. Copper for July dropped 2.5 cents, or 0.8 percent, to $3.03 a pound.

Platinum for July fell $23.30, or 1.6 percent, to $1,434.80 an ounce. June palladium dropped $21.70, or 2.7 percent, to $796.70 an ounce.

In trading of agricultural products, corn, wheat and soybeans all declined.

The price of corn is dropping this week as warmer weather improves planting conditions in the Midwest, boosting the outlook for this year's crop, said Todd Hultman, a grains analyst at DTN.

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