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Gold goes down ahead of Fed testimony

On Tuesday, gold futures managed to extend their losses during European trade because traders awaited testimony by Fed Chair, Janet Yellen. Furthermore, traders were also concerned with the approaching British referendum.    

In New York, August delivery gold futures traded at $1,286.85 per troy ounce, showing a 0.4%. Yesterday, gold futures lost 0.21%.  

On Wednesday, Janet Yellen is expected to appear in front of the House of Representatives’ Committee on Financial Services.  

Here appearance comes after a week after the US major bank left its interest rates intact close to their record minimums and also reduced its projections for lifts for next two years. 

Following CME Group’s FedWatch tool, market players are currently pricing in a 12% probability for a rate lift in July and approximately 33% for September.  As for rumors for a December rate rise, folks didn’t give more than 54%.         

Meanwhile, traders are looking ahead to the UK’s June 23 vote, that will ask voters whether the United Kingdom should remain a member of the EU. 

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