Gold prices held above $1200, after falling the previous three straight sessions, as the dollar’s rebound dented the appeal of the metal as an alternative investment.
The precious metal hit a bottom of $1195.58 an ounce, while currently trading around $1201.12 from the opening at $1200.72.
The dollar soared for a fourth consecutive session to trade around 96.91, according to the dollar index, resuming its rebound from a bottom of 95.27 hit last week.
The green currency strengthened ahead of housing, inflation and industrial production data, as well as Fed minutes for the latest policy meeting due later in the day.
Fed Chair Janet Yellen reiterated during her Congressional testimony last week that raising interest rates was not “on a preset course.” Rather, the path of rates “will depend on what incoming data tell us about the economic outlook,
“We will regularly reassess what level of the federal funds rate is consistent with achieving and maintaining maximum employment and 2% inflation,” she said.
U.S. retail sales released last week spread some positivity to the sentiment as it indicated consumer spending regained its strength in January.
The Shanghai Composite Index climbed 1.08 percent after measures announced from Chinese authorities.
Crude oil prices surged to $29.38 a barrel from the opening at $29.13, after dropping the previous session.
“We are recommending shorting gold” since “fears around China, oil and negative interest rates have likely been overstated in the gold price and other financial markets,” Goldman Sachs said on Monday.
However, the yellow metal is still finding support near the psychological level of $1200, which may help it to rise again.
