The precious metal hit a low of $1199.67 an ounce, the lowest since February 17, while currently trading around $1203.70 from the opening at $1212.95.
Gold locked its fourth straight weekly decline last week, while headed for its worst monthly drop since June 2013.
Yellen said on Friday the Fed should raise interest rates in the “coming months” if the economy picks up as predicted and jobs continue to be created, raising expectations for a June or July rate increase.
Her comments came in line with the latest remarks from other Fed members and after a batch of optimistic U.S. economic data.
Gold is very sensitive to interest rate movements, especially by the Fed, since the yellow metal provides no interest to its holders and thereby benefits from the low interest rate environment.
The dollar climbed to its highest level since March today, hitting a peak of 95.95, after rising for four straight weeks.
Meanwhile, the dollar index, which tracks the green currency’s movements against a basket of major currencies, is trading around 95.75.
Later in the week, investors will focus on U.S. labor market data, with more attention to the non-farm payrolls due on Friday.
The U.S. will also release ISM manufacturing and services data for May, as well as consumer confidence this week.
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