Gold further extended its rebound from 7-week lows in today's trading, now trading above the USD1,200 threshold on FED rate outlook. Yellen testified before the Senate Banking Committee in Washington on Tuesday and reiterated the statement before the House Financial Services Committee yesterday. She said it is unlikely that the Fed will raise its interest rate in "the next couple of FOMC meetings" as wage growth and inflation are too low at the moment. A broadly weaker U.S. dollar supported the price.
Markets remain cautious about the Greek debt deal bolstering demand for the haven asset. The IMF and the ECB warned that the reform plans are not detailed enough and Athens will have to take further steps to ensure further bailout releases.
A stronger U.S. dollar and the prospect for higher U.S. rates recently weighed on the precious metal as the precious metal is dollar-denominated and not yield-bearing.
The precious metal is currently quoted at USD1,218.20, 1,15% a troy ounce. Gold fell 2.3% last week, a fourth straight weekly loss. On Thursday the 22nd of January gold reached a five-month high at USD1,307.40.