Gold drifted lower again Thursday with reports of a huge futures sell trade overnight as markets readied for the Jackson Hole symposium tomorrow.
Janet Yellen is expected to speak at 3pm (BST), shortly after US markets open.
Commerzbank said it was sceptical that the Federal Reserve chair would really give any clear indications of the next rate hike.
“If she does not, a renewed increase in gold and silver prices can be expected.”
Better economic data recently from the eurozone has also contributed to gold’s weakness, though the broker still expects the European Central Bank will loosen its monetary policy again this year.
Saxo Bank is more concerned and suggests some warning signs for the metal have started to flash.
“Total holdings in exchange-traded products backed by gold have seen limited change for the past few weeks while hedge funds have been net-sellers in five out of the past six weeks.
Gold has shed US$22 this week and Saxo said: “Fundamentals support further upside but investment flows could indicate a deeper correction may be needed in the short term.”
Today, spot gold was trading at US$1,321, down US$3, silver was flat at US$18.54 while platinum eased a little to US$1,704.