Gold surged above the $1,200 per troy ounce mark and is likely to further. Amid global turmoil, gold clearly remains in demand as a safe haven. Gold in euro terms touched a 7½-month high of €1,076 per troy ounce on Monday; however, it could not sustain this level as the U.S. dollar declined to a 3½-month low against the euro. Silver has risen on the back of gold in recent weeks as it touched a three-month high of $15.5 per troy ounce.

Yesterday, the gold ETF registered an outflow of 1.5 tons from the SPDR Gold Trust, after 16 continuous ETF inflows of 78.6 tons (Bloomberg). Silver only managed to registered ETF outflows as it failed to register ETF inflows.

Fed Chair Yellen's semi-annual testimony is not expected to benefit to the U.S. Federal Reserve's monetary policy. Gold demand trends for the fourth quarter and for the year 2015 will be published by the World Gold Council tomorrow morning.