Chinese Demand Fueling Gold ETF Rally

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Gold prices also pushed higher Tuesday after Federal Reserve Chair Janet Yellen reiterated the central bank’s dovish stance in light of a weak global economy and stubbornly low inflation.

“Developments abroad imply that meeting our objectives for employment and inflation will likely require a somewhat lower path for the federal funds rate than was anticipated in December,” Yellen said at the Economic Club of New York, Reuters reports. “Given the risks to the outlook, I consider it appropriate for the Committee to proceed cautiously in adjusting policy.”

Yellen’s comments also weighed on the U.S. dollar, which also helped bolster USD-denominated gold prices.

Comex gold futures were up 1.5% Wednesday to $1,240.7 per ounce.

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