Gold retreated from its highest level in nearly 8 months on Wednesday as investors aim to look for clues about the path of rate hikes from Fed Chair Janet Yellen’s testimony.
The precious metal climbed to a high of $1198.85 an ounce on Tuesday, while currently trading around $1184.76 from the session’s opening at $1189.16.
The yellow soared for seven straight sessions, where it climbed to a peak of $1200.76 on Monday, taking advantage of the sell off in equities and weakness in the U.S. dollar.
Gold faced some profit taking after rising to the psychological level of $1200.
Concerns regarding global growth pushed Japanese shares 2.13 percent down on Wednesday, hitting its lowest level in 15 months.
Brent crude rose slightly to trade around $31.28 a barrel, after falling for four consecutive sessions after warnings from the IEA of more glut in the oil market and lowered the chances of coordinated production cuts.
The dollar index rose to 96.20 today, following two-day session of drop, yet still hovers near the lowest level in four sessions.
The recent data from the United States have raised expectations the Federal Reserve is likely to adopt a cautious pace of interest rate hikes this year.
Eyes will focus this week on Fed Chair Yellen’s semi-annual testimony to the Congress on Wednesday, while will address the Senate Banking Committee on Thursday.
Investors will look for clues whether policymakers would delay raising the borrowing cost in March, where any dovish tone could push the dollar lower and helps gold to resume its rally.
