Gold dipped, snapping a 7 day gaining streak as traders remained cautious ahead of a speech by the Chairwoman of the Feral Reserve Janet Yellen, but the precious metal remained on course for a second straight weekly gain.
There was increased speculation ahead of the comments by Yellen scheduled for 1945 GMT that she would give the strongest indication n yet on the timing of the expected monetary policy tightening.
“Yellen … has been accused of being too dovish and maybe she wants to react to that by making her speech sound a little bit less dovish,” Saxo Bank senior manager Ole Hansen told Reuters.
Gold for immediate delivery slipped 0.4% to $1,203.98 an ounce on the Comex division of the New York Mercantile Exchange at around 12.5pm.
Gold for April delivery, the precious stone’s most active contract, slipped 0.5% $1,199.80 an ounce.
Gold prices, however, still look set to record a second straight weekly gain bolstered by a weaker dollar earlier in the week. According to the Bloomberg Generic Pricing index, gold climbed more than 4.2% above monthly lows during the seven day rally.
There was still concern among investors, however, that the latest dip indicated that the dollar was likely to resume its rally after more than 14 days of declines.
A robust dollar would weigh on commodities denominated in dollars making them more expensive for holders of foreign currencies.
The safe-haven premium has come off today with no reports of increased violence,” Chris Gaffney, the senior market strategist at EverBank Wealth Management in St. Louis, told Bloomberg in a telephone interview.
“The dollar strength will continue to be gold’s biggest enemy.”
Gold futures for June delivery dipped 0.4% to settle at $1,200.70 an ounce to pare their weekly growth to only about 1.4%.
Platinum slipped 1.6%to $1,153.40 an ounce and silver dipped 0.3% at $17.07 an ounce.