Commodities: Yellen's Jackson Hole soapbox herds crude, metals higher

Metals and crude futures surged higher as US Federal Reserve chair Janet Yellen said the case for a hike in US interest rates had strengthened in recent months.

Taking the soapbox at Jackson Hole, Wyoming, Yellen added that the outlook was uncertain and cautioned that fiscal policy was not on a pre-set course.

Comex-traded gold, silver and copper zipped higher as Yellen spoke, and at least for the next half hour.

At 15:29 BST, Gold was up 1.57% to $1345.4 an ounce, silver was up 2.93% to $19.03 an ounce and copper rose 0.96% to 210.3 a pound.

London Metals Exchange's three-month copper, aluminium and tin ebbed, but zinc rose.

"Yellen’s speech at Jackson Hole today didn't necessarily offer much in the way of surprises," said OANDA senior market analyst Craig Erlam.

"But, it did confirm one thing, there is now a clear and public hawkish consensus building within the Fed and Chair Yellen is on board," he added.

"I think we'll see another hike this year, possibly even as early as September."

Pantheon Macroeconomics chief economist Ian Shepherdson noted Yellen's words were not a promise of monetary-policy action in September. He thought December more likely.

Yellen's polished words followed hawkish sentiments expressed by other Fed officials in recent weeks, and were negative to the US dollar versus the UK's threadbare sterling.

At about 15:29 BST, sterling was up 0.33% to fetch $1.3236, with marked greenback flutters seen versus the euro and yen.

"Whilst there remains no clear direction on the likelihood of September hikes, what is certain is the US economy has been cleared for imminent take off," said Tom Floyd, senior sales trader at Foenix Partners.

Meantime, Nymex-quoted West Texas Intermediate was up 1.39% to $47.99 a barrel at about 15:29 BST, with Intercontinental Exchange-prices Brent rising 1.25% to $50.29 a barrel.

Elsewhere, Chicago Board of Trade-priced corn was up 0.23% to $332.75 a bushel, with wheat down 1.36% to $418 a bushel.

Intercontinental Exchange's cocoa fell 0.07% to $3026/MT and cotton No.2 added 0.97% to $68.7 a pound. Live cattle was up 0.23% to $108.78 a pound.