Gold flat as markets wait for Yellen

Gold was marking time ahead of the conclusion of the March US Federal Reserve meeting. General consensus is that the Fed will leave interest rates unchanged tonight but any indication of when or if, another rate rise might occur down the line will be the market’s focus. The metal has given back some of its recent gains on the possibility of a rate rise this half year. Fed chair Janet Yellen gives a press conference after the end of the meeting. Commerzbank said: “The gold price would doubtless gain accordingly if such expectations were to be dampened by Yellen.” The broker added that FOMC members’ forecasts of the key rate level at the year-end will also be important. “If they imply further three rate hikes this year, a rate hike by mid-year is still probable from the Fed’s perspective, while this is not so likely if only two rate hikes are anticipated by year’s end. “ A couple of hours into US trading spot gold was US$3 lower at US$US$1,229. Silver was flat at US$15.25 while platinum had gained US$1 to US$956. Company news Ariana Resources (LON:AAU) has found another potential satellite for its Kiziltepe mine in Turkey after unearthing decent gold grades near the surface at Kepez West. The prospect is 12km from the proposed processing plant at Kiziltepe, where production is scheduled to start in the second half of this year. Drilling across 1,300m of strike at Kepez West confirmed a significant near-surface mineralised systemhttps://images.intellitxt.com/ast/adTypes/icon1.png, said Araiana. Most of the holes drilled were shallow, with an average depth of 77m, and a maximum depth of 108m. Major share moves Randgold Resources down 55p to 6,195p Fresnillo unchanged at 915p Anglo American up 3p to 491p Ariana Resources unchanged at 1.05p