Gold was steady as investors await Yellen’s speech and possible rising political tensions

Gold remains solid

The price of gold remained on its level on Monday. Investors are currently keeping an eye on possible rising tensions surrounding Europe and United States that may affect the demand of the bullion. Yellen’s speech is also monitored.

Daniel Hynes, an analyst from ANZ, said that geopolitical tensions were rising all throughout the week, especially when U.S. President Donald Trump fired his chief strategist Steve Bannon. The U.S. dollar and equities have recovered after news as investors moved to safe-haven buying.

In addition investor’s concerns, they are also wary on possible outburst of tension between U.S. and North Korea. Military forces from South Korea and U.S. troops already established a joint exercise on the day as a preparation.

Looking on the price of gold, U.S. gold futures traded close to the flat line at $1,291.20 per ounce for its December delivery and Spot gold inched up by 0.1 percent to finish at $1,285.91 per ounce. Technical analysts form Reuters Wang Tao said that spot gold could go back to the $1,271 per ounce support because it failed to break a resistance at $1,291.

The yellow metal touched its best level since November last Friday after security and political uncertainties surrounding Spain and United States turned away from safe-haven assets such as gold.

Markets are also eyeing the speech of U.S. Federal Reserve Chair Janet Yellen to a central bankers conference this week on possible signs of another interest rate hike this 2017 that can affect the movement of gold prices. The bullion is sensitive on rate hike because it will heighten the opportunity costs of owning gold, which is non-yielding.

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