Gold falls on Yellen's assessment of economy

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Associated Press

Posted on May 7, 2014 at 1:02 PM

Updated Wednesday, May 7 at 1:02 PM

Gold is falling after Federal Reserve Chair Janet Yellen gave an upbeat assessment of the U.S. economy and said that inflation remains low.

The price of gold for delivery in June fell $19.70, or 1.5 percent, to $1,288.90 an ounce.

Yellen's comments suggest that the Federal Reserve is set to continue reducing its economic stimulus, lessening the threat of rising prices. Investors typically buy gold as a hedge against inflation.

Gold also gained after Russia pulled back its troops from the Ukrainian border, potentially reducing tensions in the region.

Other metals also fell.

Corn, wheat and soybeans all declined.

Corn is dropping as warmer weather improves planting conditions in the Midwest, boosting the outlook for this year's crop.

In energy prices, crude oil rose.

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