Quotes from Commerzbank Corporates & Markets:
-Gold is trading at around $1,210 per troy ounce this morning after hitting a seven-week low of $1,190 for a time yesterday. So far, this also means that the price has not yet fallen below the psychologically important threshold of $1,200 in any lasting fashion, which we see as a positive sign for the gold price.
-Fed Chair Yellen's testimony before the US Senate briefly sparked volatility on the gold market. All in all, she appeared relatively dovish. Even though the Fed may change its forward guidance as early as in March, Yellen made it clear that this does not herald any interest rate hikes in the near future.
-Yields on ten-year US Treasuries fell below the 2% mark in response, thus lending support to the gold price, especially as there was no headwind from the US dollar either. The other precious metals - especially silver - are also gaining in gold's slipstream this morning. Silver climbed by 1.6% to reach $16.5 per troy ounce. Yesterday saw silver ETFs record significant inflows for the second day running, at 45 tons.
