Spot gold climbed to its highest in almost three months on Tuesday, as the dollar fell ahead of congressional testimony by new Federal Reserve chief
Spot gold rose 0.7 per cent at
US gold futures for April delivery also rose 0.7 per cent to
Yellen's testimony comes at a tricky time given two months of soft employment growth and as a deadline looms on raising the US government borrowing limit before a possible debt default.
"I wouldn't be surprised if we see this little rally go up and have a poke above
Gold prices were supported by a weaker US dollar, which was wallowing near a two-week low against a basket of major currencies.
"The US dollar outlook remains pivotal for bullion in 1H14, and we still believe that the export of changing US policy will provide a major challenge to gold this year,"
The metal has risen around 6.5 per cent since the beginning of the year, after a 28 per cent drop in 2013, as mixed economic data in
Most Popular Stories
- #myNYPD Twitter Campaign Backfires for NYPD
- Pols Back Away From Bundy After Racist Statements
- First-time Jobless Claims Jump by 24,000
- Putin Says Internet Is CIA Plot
- Durable Goods Orders Rose More Than Expected
- Freshman Senators Speak Out on Foreign Policy
- Nasdaq OMX Profits Soar in Q1
- John Oliver Set for 'Last Week Tonight'
- Justin Bieber's War Shrine Pic Causes Flap
- Sina Loses License Over Porn