MTS Help Center

Bullion for immediate delivery fell as much as 0.4 percent to $1,217.49 an ounce before trading at $1,218.84 by 11:57 a.m. in Singapore. Prices slid to 1,208.38 on Monday, the lowest intraday level since Feb. 23, according to Bloomberg generic pricing.

Gold is the best performing commodity this year on speculation the Fed may slow rate increases as inflation lags behind the official 2 percent goal. Fed Bank of San Francisco President John Williams said Monday the global economy was having a significant impact on measures policy makers watch to determine rates. Yellen is scheduled to speak to the Economic Club of New York Tuesday.

Investors are “waiting to see particularly how Yellen’s speech goes, to get some indication around the shorter-term environment for gold, which broadly speaking has been positive,” Daniel Hynes, a senior commodity strategist at Australia & New Zealand Banking Group Ltd. in Sydney, said by phone.

Investors continued to increase holdings in exchange-traded funds backed by gold. Assets rose for a ninth day to 1,771.7 metric tons on Monday, the highest since December 2013, according to data compiled by Bloomberg.

Gold dipped slightly on Tuesday, but held above a one-month low on a softer dollar and weak US economic data that dented the expectation of an immediate hike in US interest rates.

"If (Ms Yellen) reinforces recent sentiment expressed by some of governors, we could see further dollar strengthening and corresponding pressure on gold," said INTL FCStone analyst Edward Meir.

Gold Price Steadies before Fedspeak, Fed Chair Yellen and Fed’s William later today. However, gold prices recovered toward a daily high of 1223.2 while the 1207.6 support level held firmly on the downside. Below that, another support level comes at 1191. Mixed momentum signals indicate that gold prices may retain current levels ahead of economic events this week.

Reference : Bloomberg, DailyFX, Reuters