Commodities: Gold under pressure ahead of Yellen, Fed officials' speeches

Gold prices were under pressure on Friday afternoon as traders look ahead to commentary from several US Federal Reserve officials for any clues on a possible rate hike in March.

At about 15:35 GMT, on Comex, gold was down 0.42% to $1227.70 an ounce, with silver up 0.24% to $17.79 an ounce and copper up 0.02% to 269.10 cents a pound.

"Janet Yellen is set to speak later this evening, with investors ... paying keen attention to just how hawkish the central bank chair sounds," said Spreadex's Connor Campbell.

Although most of the focus would be on Yellen's speech, others by Fed officials Charles Evans, Jerome Powell and Stanley Fischer would be inspected closely, too.

Think Markets UK chief market analyst Naeem Aslam observed that the market had factored a Fed hike in for March, which was serving to push the US dollar higher and safe-haven gold down.

"However, if they hold on their interest rate hike, then we may see a massive sell-off for the dollar and huge upward moves for the gold price," opined Aslam in a statement.

"You need to be prepared for this. The dollar index could move easily fall below $100 and the gold price could touch the $1280 mark."

SwissQuote commented that the yellow metal was showing no signs of reversing bearish course after yesterdays pullback.

"The mid-term trend is clearly positive indicating potential to retest $1263 resistance."

Three-month industrial metals on London Metals Exchange were heavily lower. Zinc was down 2.8%, aluminum was down 1.95%, copper was down 1.43% and tin was down 0.9%.

Turning to energy, Nymex-priced West Texas Intermediate crude was up 0.61% to $52.93 a barrel, and Intercontinental Exchange-traded Brent was up 0.56% to $55.39 a barrel.

CMC Markets UK chief market analyst Michael Hewson aid oil had rebounded from two-week lows yesterday ahead of the latest rig count data from US oil producers.

"Reports of fighting near Libyan oil ports could also be helping underpin prices."

SwissQuote added that crude oil remained contained in a sideways range, unable to mount a serious challenge to $55.24 resistance.

"We rule out for the moment any correction towards $49.61. Expected to see deeper buying pressures."

Among agriculturals, Chicago Board of Trade-priced corn was down 0.26% to 378.50 cents a bushel, with wheat down 0.66% to 449.75 cents a bushel.

On ICE, cocoa was up 0.73% to $1942 a MT, with cotton No.2 up 0.56% to $77.21 cents a pound. Live cattle rose 0.09% to 116.25 cents a pound.