The gold prices is taking a breather today, breaking a 4 day losing streak but the precious metal is expected to come under further pressure after comments by US Fed president Janet Yellen over the weekend.
In Early trading gold was trading at $1,210 up from $1,205 at close of trading on Friday.
Fed chair Janet Yellen noted in a meeting with a congressional committee that a rates rise is likely to happen with analysts speculating that this meant in December at the central banks next meeting.
A rate hike "could well become appropriate relatively soon". Yellen said.
Overall the gold price is now heading towards a 6 month low as investors head for the US dollar on the back of increased expectations that some of President elect Trumps wild policies will become a reality making the US Financial markets overall a good play,
"Gold prices reeled down to a five-and-a-half month low as, after the initial shock from Trump's win, the US dollar recovered, bond yields surged and the equity markets soared all on expectations that all his elections proposals will become a reality,” said Nevine Pollini, senior equity analyst at Union Bancaire Privee (UBP)
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