Investing.com - Gold prices ticked higher in European hours on Thursday, holding in a familiar range as markets awaited testimony from Federal Reserve Chair Janet Yellen later in the day.
Gold for December delivery on the Comex division of the New York Mercantile Exchange tacked on $3.10, or 0.25%, to $1,227.00 a troy ounce by 3:52AM ET (08:52GMT). It posted a small decline of less than 0.1% the day before.
Federal Reserve Chair Janet Yellen is due to testify on the economic outlook before the U.S. Congress Joint Economic Committee on Thursday at 10:00AM ET (15:00GMT).
Her comments will be monitored closely for any new insight on policy. The Fed left interest rates unchanged earlier this month, in a widely expected decision, but signaled it could hike in December as the economy gathers momentum and inflation picks up.
Besides Yellen, there is important data Thursday. CPI, housing starts, the Philly Fed survey and weekly jobless claims are all due at 8:30AM ET (13:30GMT).
Investors are currently pricing an 86% chance of a rate hike at the Fed's December 13-14 meeting, according to Investing.com's Fed Rate Monitor Tool.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.
The greenback hovered close to the prior session's 14-year high against a basket of major currencies early on Thursday, supported by expectations of higher interest rates in the coming months.
The dollar index was recently at 100.33, after climbing to 100.59 the day before, a level not seen since April 2003.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Meanwhile, the yield on the U.S. 10-year Treasury was down 2.5 basis points at 2.198% in early trade, pulling back from a 10-month high of 2.302% set earlier in the week.
Market analysts warned that the outlook for gold remains cloudy in the near-term. Prices of the yellow metal are down more than 6% over the past week amid optimism that increased U.S. fiscal spending and tax cuts under a Trump administration will spur economic growth and inflation, which would ultimately lead to an era of higher interest rates.