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1st LD Writethru: Gold down on Fed Chair Yellen's testimony in Congress

Xinhua, July 16, 2015 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange went down Wednesday as Fed Chairwoman Janet Yellen's statements indicated a rate hike by the end of the year.

The most active gold contract for August delivery fell 6.1 U.S. dollars, or 0.53 percent, to settle at 1,147.40 dollars per ounce.

Gold was under pressure Wednesday as U.S. Federal Reserve Chairwoman Janet Yellen testified before U.S. House of Representatives' Financial Services Committee, saying that she expects the labor market to improve, and that events in Greece and other destabilized areas outside of the U.S. will not have a great impact on the country's economy.

Yellen said that the U.S. was on track for a rate hike later this year. Analysts originally expected interest rates to rise in June, but due to weaker-than-expected employment data, expectations were pushed back to September. Yellen said Friday that the U.S. was on track for an increase in the interest rate this year.

The U.S. Dollar Index rose by 0.57 to 97.16 as of 1808 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

Silver for September delivery fell 26.7 cents, or 1.74 percent, to close at 15.048 dollars per ounce. Platinum for October delivery dropped 6.7 dollars, or 0.65 percent, to close at 1,021. 70 dollars per ounce. Endite