• Gold prices rose on Thursday after U.S. Federal Reserve Chair Janet Yellen said the central bank would only gradually tighten monetary policy, curbing speculation that interest rates would rise more than once this year.
Spot gold rose 0.3 percent to $1,223.11 per ounce at 0351 GMT. U.S. gold futures for August delivery rose 0.3percent to $1,222.60 per ounce.
The dollar slipped as Yellen's comments sparked a significant decline in U.S. Treasury yields.
• "A weaker dollar and falling rates could be helpful for the precious metal, but continued strength in U.S equities remain a drag," said INTL FCStone analyst Edward Meir.
• "Gold's fate in the short term will undoubtedly be decided on Friday now by the U.S. CPI data which is indeed shaping up to be a major driver for the big Dollar, equities and bonds as well," said Jeffrey Halley, senior market analyst at OANDA.
• Spot gold may revisit its July 10 low of $1,204.45 per ounce, as its bounce from this level could have completed, according to Reuters Technical analysts, Wang Tao.
• Among other precious metals, silver rose 0.4 percent to $15.94 per ounce.
• Investors should have used gold’s month-long pullback, culminating in a four-month low as a buying opportunity, according to one major precious metals portfolio manager.
John Hathaway, senior portfolio manager at Tocqueville Asset Management, was fairly critical of positive sentiment surrounding further U.S. economic growth, which has led to complacency in financial markets, resulting overvalued equity valuations.
Reference: Reuters, Kitco
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