Gold traded rebounded its lowest level in two months on Monday as investors weighed the escalating geopolitical tensions in Ukraine and the Middle East.
Russian President Vladimir Putin and Ukrainian President Petro Poroshenko would meet in Minsk, as tensions flare on the two nations’ border.
Although the yellow metal has gained more than 7 percent this year, it is still unable to have a clear direction amid the rising speculations the Fed may raise interest rates sooner than predicted.
Last week, the shiny metal slipped 2 percent as Fed minutes signaled may increase borrowing costs sooner than predicted.
Yellen mentioned at a meeting of central bankers in Jackson Hole, Wyoming, that the U.S. labor market was recovering.
Over the weekend, she continued her comments by stating that raising interest rate may take place next year, which was considered as a speech giving less attention to economic growth.
Accordingly, the US Dollar opened today on an upside gap to resume its rally versus a basket of major currencies, to hover near 11-month. The dollar index soared to peak of 82.65 after touching a low of 82.52.
Later in the day, eyed will focus on U.S. durable goods for July and consumer confidence for August.
On the other hand, ECB President said the bank ready to inject to fresh stimulus should inflation worsens.
Gold is currently trading around $1288.59 after hitting a high of $1290.76 and a low of $1275.23.
The prices are still below the physiological level of $1300 which pushed the price down last week.
Crude Oil for October’s delivery rose to trade around $93.68 after hitting a bottom of $93.75.