Investing.com - Gold prices edged lower in European trade on Tuesday, moving back towards the lowest level in around four months as investors awaited comments from Federal Reserve Chair Janet Yellen for fresh cues on policy direction.
Comex gold futures were at $1,209.65 a troy ounce by 3:45AM ET (0745GMT), down $3.60, or around 0.3%. Prices saw a modest bounce back on Monday after touching their lowest since March 15 at $1,204.00.
Fed Chair Janet Yellen is set to deliver her semi-annual monetary policy testimony on the economy before Senate and House committees in Washington DC later this week.
Yellen is scheduled to testify on the economy before the Senate Banking Committee at 10:00AM ET (1400GMT) Wednesday. On Thursday, she will appear in front the House Financial Services Committee also at 10AM ET.
Her comments will be monitored closely for any new insight on the timing of the next U.S. rate hike and clues on how the central bank plans to pare back its massive balance sheet.
San Francisco Fed President John Williams said Tuesday in Sydney that it was a reasonable view to expect one more rate hike this year, and his own view was to start adjusting the central bank's balance sheet in the next few months.
Later in the day, Fed Governor Lael Brainard was due to speak in New York.
The Fed hiked rates at its June meeting and stuck to its forecast for one more rate hike this year, but the subdued inflation outlook has since raised doubts over whether the U.S. central bank will be able to stick to its planned tightening path.
Futures traders are pricing in around a 50% chance of a hike by the end of the year, according to Investing.com’s Fed Rate Monitor Tool.
Also on the Comex, silver futures shed 14.7 cents, or roughly 1%, to $15.48 a troy ounce, after sliding to $15.14 a day earlier, a level not seen since April 2016.
Among other precious metals, platinum was down 0.5% at $897.50, while palladium rose 0.3% to $839.48 an ounce.