Gold Prices Edge Lower on Tuesday as Markets Await Federal Reserve’s Yellen’s Testimony on Wednesday

Gold prices fell slightly early Tuesday with the stronger dollar after touching near a 4 month low in the market’s previous session. The market is waiting for clues from the Central Bank on the upcoming future interest hikes.

Spot Gold fell by 0.2% and reached $1212.01 per ounce at 08:30 GMT after reaching a lowest of $1204.45 in the previous session. US Gold futures for delivery in August lifted by 0.3% and reached $1212.80 per ounce.

Gold prices likely to stay week since a falling trend over the last 2 to 3 weeks. Prices continue to range below the strong support turned resistance at $1220. This weakness is expected to continue.

More than 2 ton of Gold traded through London Metal Exchange’s new spot contract by late afternoon.

Traders are looking ahead to Wednesday and Thursday’s US Fed Reserve Chair Janet Yellen’s addressing to Congress.

On Monday, US Treasury yields slipped in line with the Euro Markets as investors consolidated positions due to sharp gains following US non form payrolls report on Friday.

The New York Fed Reserve released its latest monthly Consumer Expectations Survey. According to the report, consumers are expected to increase spending in the coming months ahead. They have voiced confidence about finding new jobs instead of losing one due to a strong labor market in US.

A Sentix Pol on Monday showed, Euro Zone bonds are expected to be beaten in the coming months due to ECB’s policy to turn off the money taps after years of generosity by the Bank.

Yaron Mazor is a senior analyst at SuperTraderTV.

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