Gold depressed near $1,210, Yellen on sight

The ounce troy of the precious metal stays on the defensive so far this week, currently testing the $1,210 area ahead of Yellen’s testimonies on Wednesday and Thursday.

Gold bounces off 4-month lows

Bullion stays under pressure in levels last seen in mid-March just above the critical $1,200/oz handle amidst rising demand for the greenback and growing cautiousness in light of the upcoming testimonies tomorrow and Thursday.

In addition, the yellow  metal is expected to stay under pressure, as US inflation figures and retail sales for the month of June are due on Friday, all against the backdrop of potential further tightening by the Federal Reserve at some point in Q4.

Earlier in the session, San Francisco Fed and 2018 voter J.Williams argued in favour of another rate hike this year, while he expects the Fed to start the normalization of its balance sheet later in the year as well.

Later today in the NA session, FOMC’s permanent voter L.Brainar is due to speak in an otherwise irrelevant US calendar.

Gold key levels

As of writing Gold is losing 0.29% at $1,209.60 and a breakdown of $1,204.00 (low Jul.10) would expose $1,196.20 (low Mar.10) and finally $1,185.60 (low Jan.26). On the other hand, the next resistance emerges at $1,226.17 (10-day sma) followed by $1,230.43 (200-day sma) and then $1,240.59 (21-day sma).