Gold price slippage after Yellen's speech

Gold was near a 1-month low yesterday and looked likely to slip below the $1,100-an-ounce level after Fed's Yellen bolstered market expectations on a U.S. interest rate hike in December. Spot gold went up 0.2 pct to $1,109.10 an ounce, staying close to the previous session's low of $1,106.

On Wednesday, the gold price dropped to a 5 week low, leass than 1100$ per troy ounce, which was recovered marginally yesterday morning, This slide was likely because the gold ETF outflows were renewed and were decreased by 18 tons in past 4 trading days, also by the USD strength.

"This is because the US Federal Reserve appears willing to hike interest rates - this at least was what Fed Chair Yellen stressed in her speech yesterday", says Commerzbank.

Fed chair woman Yellen explained that the US economy is performing well, consumer spending is showing solid growth, and the labor market has improved significantly. As Yellen pointed out, however, the decision as to whether interest rates should already be raised in December will depend on the data situation.