Gold inches lower this Morning as it waits for Central Banks

The price of spot US gold (XAU/USD) moved a tad lower this morning. Yellow metal investors are eying upcoming central bank directional cues. Also the US dollar moved higher from a four month low. Traders of the yellow bullion are looking towards comments from US Federal Reserve Bank (Fed) Chair Janet Yellen.

Spot gold shed 0.2 percent to $1,212.01 per ounce, as of 12:00 am GMT time. It had hit a low of $1,204.45 in the previous session. This is the bullion’s lowest price level since March 15. US gold futures, for August delivery, were up 0.3 percent to $1,212.80 per ounce.

Investors will be listening to US Traders were looking ahead to Wednesday and Thursday, when U.S. Reserve Chair Janet Yellen who will address Congress later this week starting Wednesday.

Gold Moves Lower as the Dollar Firms

The US dollar has hit a two month high against the Japanese yen today. We also saw a small rally in the global equity markets. Equities were supported by robust economic data out of Germany. There is also a renewed investor interest in US technology stocks. This was brought on an Amazon online sale event.

Also in the news, US Treasury yields fell yesterday. This was in line with weak European markets. We had seen gains after Friday’s strong non-farm payrolls report. This had prompted investors to consolidate open positions.

It is also expected that Eurozone area will take a beating in the coming months. The European Central Bank will start to taper ifs quantitative easing program after years of unprecedented buying.