Gold made the year high today as weak U.S. economic prospect spurred physical demand at Asian market and before the Fed Chairperson Jenet Yellen testimony.
Gold spot made the high of $1287.63 today morning at Asian markets. The metal rose to the 2 months high. After the end of China Lunar New-year Holidays Gold prices have shown upward trend. Softening growth at emerging markets may hike precious metals prices.
Today New chairperson of Fed will testify in front of congress. At GMT 1500 the chairwoman will testify on the Semi-annual Monetary Policy Report before the House Financial Services Committee. She will direct on issue of labour market condition and views on tapering. Absence of Fed meet in this month makes this testimony more valuable.
Traders may try to get subtle clues from the comments of Fed Chair. We may see volatile movement if there will come any unexpected view of Fed on monetary policy.