Commodities: Gold little moved after Yellen testimony

The price of safe-haven gold was little moved after US Federal Reserve chair Janet Yellen testified for the Senate banking committee on Tuesday.

At 15:21 GMT, on Comex, gold was up 0.02% to $1226.0 an ounce, while silver rose 0.13% to $17.85 an ounce and copper fell 0.74% to 276.25 cents a pound.

The price of gold had risen in the hours before Yellen took centre stage, but tapered off immediately prior to Yellen.

Sterling was lower against the dollar after softer than expected UK consumer-price index (CPI) data earlier on Tuesday. In the year to January, the CPI grew 1.8%, up from 1.6% in December but slightly short of the 1.9% consensus forecast.

Three-month industrial metals on London Metals Exchange were mixed. Tin was a standout performer and up 2.67% to $19,995 a MT. Copper also rose, but zinc and aluminum fell.

"Yellen largely maintained the same tone seen in the (US) central bank's January meeting, claiming that a rate hike would be appropriate if inflation and wage growth matches the its current expectations," said SpreadEx financial analyst Connor Campbell.

She also hinted that US President Donald Trump's fiscal policies could change the course of the Federal Reserve's 2017 journey.

Others, such as Pantheon Macro chief economist Ian Shepherdson, summed up Yellen's testimony in one line: "No real surprises; waiting for clarity on fiscal policy."

Referring to interest rates, Yellen repeated the usual line that the Fed expected inflation to head to 2% and that a gradual rise in rates would be required.

"The Fed will evaluate the incoming data and potential fiscal policy changes "at upcoming meetings"; in other words, all meetings are live," said Shepherdson.

Meantime, Nymex-listed West Texas Intermediate was up 1.0% to $53.46 a barrel and Intercontinental Exchange-traded Brent was up 1.19% to $56.25 a barrel.

SwissQuote commented that crude oil was still bouncing from support given at $50.71, noting that strong resistance lay at $54.32.

"Yet, a correction in the near-term towards $49.61 is possible in case support at $50.71 is broken. The black commodity needs to push higher to confirm deeper buying pressures."

Among agriculturals, Chicago Board of Trade-priced corn was down 0.27% to 374.5 cents a bushel, and wheat was down 1.12% to 461.75 cents a bushel.

ICE-quoted cocoa was up 0.21% to $1929 a MT, and cotton No.2 was down 0.33% to 77.95 cents a pound. Live cattle fell 0.27% to 112.83 cents a pound.