Gold rebounds

Gold jumped 1 percent on Wednesday after dropping to a seven-week low the session before, with Federal Reserve Chair Janet Yellen indicating flexibility in raising US interest rates.
The dollar weakened after Yellen held back from giving a clear view on when the Fed may begin hiking rates, fuelling a rally in precious metals with silver rising more than 3 percent and palladium hitting a six-week high.
China’s return from a week-long Lunar New Year holiday also buoyed gold prices, with premiums on the Shanghai Gold Exchange rising.
Yellen said on Tuesday that while the Fed is preparing to consider rate hikes on a “meeting-by-meeting basis”, an increase is not likely for at least the next couple of meetings.
Gold rose as the overall tone of Yellen’s comments was “a bit dovish”, said Howie Lee, investment analyst at Phillip Futures. “But we don’t think this rally will be sustainable. Yellen also made it abundantly clear that the US economy is recovering and she will be looking to normalise interest rates at one point.