Janet Yellen drops gold prices to 6-year lows

After comments by the head of the US Federal Reserve System Janet Yellen about a possible hike in the refinancing rate this month, gold prices collapsed to the lows of 2009-2010.

Spot gold prices fell nearly $ 10 to $ 1,045.85 an ounce, their lowest since February 2010.

US gold futures fell to $ 1,045.40, the lowest since October 2009.

Janet Yellen said she is looking forward to the transition to higher interest rates. According to her, this will be perceived as an exit of the economy from the recession.

Yellen expressed confidence in the American economy, saying October job growth signals a recovery, even if not yet in full force.

“The market is ready to accept a rate hike at the next Fed meeting later this month,” said an analyst at HSBC.

The US rate hike, which is widely expected in the market, will be the first in nearly a decade.

Investors prefer to get higher returns on paper assets and withdraw funds from gold.

The dollar jumped to its highest value in 12.5 years against a basket of major currencies.

Investors accelerated the withdrawal of funds from assets in precious metals, adding pressure on metal prices. Assets at SPDR Gold Trust, the largest exchange-traded fund covered in gold, fell 2.41 percent to 639.02 tons on Wednesday, the lowest since September 2008.