Gold falls on Yellen's assessment of economy

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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.

"It's not been a good day for those that believe in gold ownership," said George Gero, vice president of global futures RBC Capital Markets in New York.

Other metals also fell.

Silver for July delivery fell 30 cents, or 1.5 percent, to $19.34 an ounce. Copper for July dropped 2.5 cents, or 0.8 percent, to $3.03 a pound.

Platinum for July fell $23.30, or 1.6 percent, to $1,434.80 an ounce. June palladium dropped $21.70, or 2.7 percent, to $796.70 an ounce.

In trading of agricultural products, corn, wheat and soybeans all declined.

The price of corn is dropping this week as warmer weather improves planting conditions in the Midwest, boosting the outlook for this year's crop, said Todd Hultman, a grains analyst at DTN.

Unseasonably cool and damp weather in the northern Plains region has delayed corn planting this year. A government report Monday showed that farmers had planted only 11 percent of the corn that they intended to at the end of last week. The five-year average for this time of the year is 42 percent.

The price of corn for July delivery dropped 3.5 cents, or 0.7 percent, to $5.14 a bushel.

Corn also dropped after Russia's troop pullback. Ukraine is a big exporter of corn and the price of the grain has risen this year on concerns that the conflict with Russia would jeopardize Ukraine's ability to keep its exports flowing smoothly.

Wheat for July fell 1.25 cents, or 0.2 percent, to $7.38 a bushel. Soybeans declined 13.25 cents, or 0.9 percent, to $14.46 a bushel.

In energy trading, crude oil rose $1.27, or 1.3 percent, to $100.77 a barrel.

Wholesale gasoline rose 3.2 cents to close at $2.92 a gallon. Heating oil rose 4 cents to close at $2.93 a gallon and natural gas fell 5.9 cents to close at $4.74 per 1,000 cubic feet.

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