Gold clawed back some of last week’s loss as investors prepared for the latest speech from Janet Yellen.
Spot gold was some US$6 higher at US$1,228 ahead of the Fed chair giving her testimony to the Economic Club at lunchtime in the US.
At the last formal Fed meeting, the US central bank reduced its expectations to two more interest rate rises this year against four previously, but some of the more hawkish members have indicated a rise may come sooner than expected.
Gold is still up 15% so far this year and if Yellen is seen as being dovish again the metal may recoup some more of the ground lost last week.
TD Securities said: “Weak US economic indicators and signs of disinflationary pressure are very likely to keep gold from collapsing.
“Indeed, these factors may well send gold higher, especially if developments ahead of the pending Brexit vote create financial market volatility and a hike in safehaven assets.
“We expect gold to average $1,245/oz in Q2- 2016, which is about $25/oz higher than today's spot.”
Spot silver was a touch lower at US$15.19, while platinum added US$8 to US$951.
Major share price moves
Randgold Resources down 65p at 6,295p
Fresnillo down 5p at 915p
Anglo American down 21p at 479.2p