(MENAFN- ProactiveInvestors) Gold rallied a little as investors scrutinised US Federal Reserve chair Janet Yellen’s latest testimony to Congress.
Soon after Yellen started to speak the price had recovered to US$1201 having been as much as US$8 lower at US$1193 prior to her comments.
The metal was getting no help from the Greeks with more compromises made by the new government to get a four month extension to its bail-out aid. A Grexit now looks increasingly unlikely said economists.
Gold has been affected by the absence of Chinese buyers during their New Year holiday but some this slack has been made up by exchange traded funds. Holdings in the gold ETFs rose for a second day running on Monday helping to make for the lack of physical demand.
Away from the day-to-day market there were reports a new US investigation is underway into banks for rigging the price of gold and other precious metals.
flagged up the probe with its results yesterday and said the Justice Department had asked for documents related to the investigation in November.
Reports today suggested ten banks in total are under investigation including Deutsche Bank Goldman Sachs JP Morgan SocGen Standard Bank and UBS.
The Justice Department is said to be looking at the way gold silver platinum and palladium prices were set. The Commodity Futures Trading Commission meanwhile has also reportedly opened a civil investigation.
A new method of electronic price setting to replace the century-old gold fix comes on line in London next month.
Spot silver was a little higher at US$16.38 while platinum was flat at US$1161.
Major movers
up 84p at 5005p
up 26p at 829p
up 39p at 1237p
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