U.S. 2-year yield hits highest since 2008 after data

U.S. 2-year yield hits highest since 2008 after data

-The MSCI Emerging Market index sank 0.8 percent to the lowest in more than a month.

Comex December gold, at the session low of $1,285.30 an ounce, has lost almost 6% of its value since the one-year high of $1,362.40 on September 8.

But Yellen & Co see these kinds of influences as "transitory" and do not allow them to crowd the discussion on interest rates.

Australian markets moved lower, with the information technology and telecommunication services sub-indexes leading losses. The labor market could become overheated, causing an inflation problem down the road.

"Although we judge that inflation will most likely stabilize around 2 percent over the next few years, the odds that it could turn out to be noticeably different are considerable", Yellen continues, noting the potential for movements in oil prices, the US Dollar and other short term one-off variables to influence inflation.

Stocks pare gains as Fed's Yellen leaves imminent rate hike on the table. According to Reuters, markets are now pricing in a 78 percent of a rate increase in December, up from 72 percent late last week. Case-Shiller's national index rose 5.9%, up from 5.8%.

Pending home sales for August fell 2.6% to 106.3, the lowest reading since January 2016. The Russell 2000 index of smaller-company stocks gained 4.91 points, or 0.3 percent, to a record 1,456.86. The world equity markets took this as a positive sign that a strengthening US economy and rising inflation will help the other major industrialized countries' economic growth prospects, as well as reignite some wanted inflation.

The speech ended with the dollar ending it modestly lower.

Heightened expectations that the U.S. Federal Reserve will raise interest rates again this year drove gold to a one-month low on Wednesday, extending losses after the biggest one-day loss in nearly two years during the previous session.

Bond yields declined on Monday on safe-haven demand due to tensions between North Korea and the United States and surging support for the far right in Sunday's German election.

In the other precious metals, the spot silver price rose $0.048 to $16.835-16.88 per oz.

Strong U.S. data on durable goods orders also pressured gold, Melek said. Nymex WTI crude declined 46 cents, or 0.9%, to $51.76 a barrel.

Weekly data on US petroleum supplies will be released by Energy Information Administration late Tuesday and arly Wednesday. An increase for crude supplies would follow three-consecutive weekly increases reported by the EIA, as Hurricane Harvey disrupted USA refinery operations, reducing demand for crude oil. The S&P 500 added 8.07 points, or 0.32 percent, to 2,504.91.