(MENAFN- ProactiveInvestors) Gold had a steadier day even though attention remained focus on US interest rates and when they will start to go up.
Fed chair Janet Yellen reignited the debate last week when she said there would be a rise this year sending the dollar soaring.
Against a basket of rivals the US currency jumped by more than 1% and was particularly strong against the yen and euro.
Paradoxically it was the recent strength of the dollar that had prompted the Fed to turn more cautious on fears it would affect the competitiveness of US business.
Gold traditionally moves in the opposite direction to the dollar and it fell to a two–week low despite a decent day for gold backed exchange traded fund SPDR which saw a slight inflow of money.
Commerzbank suggested this meant the selling pressure was coming from the futures market.
One consistent source of support for gold has been the Russian central bank and a senior member said this policy would continue as the country seeks to insulate itself from the risk of further western sanctions.
Dmitry Tulin the bank’s head of monetary policy told the Russian parliament: “The price of gold swings but on the other hand it is a 100% guarantee from legal and political risks."
Russia's gold reserves current stand at 40.1mln troy ounces following steady buying for many months.
An hour into trading on Wall Street spot gold was flat at US$1870 silver was US$16.87 and platinum was US$2 lower at US$1119.
Major movers
up 33p at 4644p
up 7p at 743p
up 4p at 1041p
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