Gold held steady on Tuesday supported by an easing US dollar, with investors looking to a speech later in the day by Federal Reserve Chair Janet Yellen for clues on the outlook for US monetary policy.

Ms Yellen is scheduled to take part in a discussion on global economic issues at London’s Royal Academy.

She will likely reiterate the central bank’s positive views about the US economy and the Fed’s stance of raising interest rates once more this year, said OCBC analyst Barnabas Gan.

Spot gold had risen 0.1 per cent to US$1,244.96 per ounce by 0428 GMT. It hit a near six-week low of US$1,236.46 in the previous session.

US gold futures for August delivery fell 0.1 per cent to US$1,245.40 per ounce.

“We remain somewhat cautious about gold here as the poor looking charts and the fact that funds seem to be paring length should keep the pressure on the complex for a while longer,” said INTL FCStone analyst Edward Meir.

“We think prices could eventually get to the US$1,220-US$1,225 level, at which point we could see some bargain-hunting set in by those betting that the stronger dollar and the better tone in US stocks could be derailed, at least temporarily,” Mr Meir added.

Source: Business Times