Gold Dropped After Yellen Comments

Gold held below $1,300 an ounce after the biggest one-day drop in three weeks on speculation that the U.S. Federal Reserve will further reduce monetary stimulus as the economy recovers.

Chair Janet Yellen told U.S. lawmakers in Washington yesterday that the world’s largest economy still needs stimulus even as data supported the outlook for faster expansion this year. The central bank has announced cuts to bond-buying at each of the past four meetings.

Gold has rallied 7.5 percent this year in part as tension in Ukraine spurred haven demand. Russian President Vladimir Putin called on separatists in Ukraine to postpone a vote for autonomy and said he’s pulled Russian troops from the country’s border after weeks of tension, as the U.S. said there’s no sign of a withdrawal.

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