Gold Prices were seen trading lower during Asian trading hours on Wednesday after US President Barack Obama announced that he will nominate Janet Yellen as the Chairwoman of the Federal Reserve (Fed).
Yellow metal futures for December delivery dropped 0.59% lower at $1,316.80 an ounce, while silver futures edged 0.98% lower to $22.225 an ounce at the time of writing.
The US dollar index, measuring the US dollar’s strength against six major currencies, advanced 0.27% to 80.276 at the time of writing.
Meanwhile holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, came in at 899.99 tonnes on Monday, its lowest level since February 2009.
According to a report by the Wall Street Journal released on Wednesday, the US President Barack Obama will nominate Janet Yellen to be the next Fed Chairman.
The official nomination is expected to be made public at 3pm (EST) on Wednesday.
The ongoing government shutdown in the globe’s largest economy has entered its second week, as investors continue to worry that the Democrats and Republicans will not finalize an agreement this week.
The US lawmakers have an additional 9 days to finalize the country’s debt-limit issue by October 17, when the country’s borrowing limit is expected to end.
On Tuesday, The House Speaker John Boehner commented that the US president and Democrats needs “I’m not drawing any lines in the sand,” he said.
US President Barack Obama said he expects the Congress to finalize an agreement to raise the country’s $16.7 trillion debt limit on time.
On Tuesday, the International Monetary warned the US government failure to reach an agreement to raise the country’s debt limit could seriously damage the country’s economy, cutting this year’s global outlook. The global outlook for this year will be 2.9% and 3.6% next year.
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