Gold price down to 4.5-week low

Under pressure from a firm US dollar and rising equity markets around the world, gold price dropped to a 4½-week low of $1,115 per troy ounce for a time yesterday.

Furthermore, outflows from ETFs were seen for the third consecutive day: holdings in the gold ETFs tracked by Bloomberg were reduced by 5.5 tons yesterday, notes Commerzbank. 

Attention will be focused today on speeches by three FOMC members, including Fed Chair Yellen. The market hopes that these will give some new indication of whether the Fed still plans to raise interest rates this year. The raise in interest rate will cause the metal price to fall further.