Is it a good time to buy gold? Price hits four-month low

london - Dollar holds firm on expectations of tighter US monetary policy

Gold prices hovered near four-month lows and the dollar held firm on expectations of tighter US monetary policy as the market awaited a speech from Federal Reserve chair Janet Yellen this week.
Spot gold was down 0.3 per cent at $1,210.16 an ounce at 1128 GMT, near Monday's $1,204.45, its lowest since March 15. US gold futures slipped 0.3 per cent to $1,209.7.
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"The recent drop in gold reflects the market pricing in additional tightening from central banks," Danske Bank analyst Jens Pederson said. "But we are at the lower end of the range for gold prices. It could be a buying opportunity if tensions with North Korea escalate."
Gold is down more than six per cent from a seven-month high near $1,300 in June.
Perceptions that an era of ultra-cheap money is gradually ending have been reinforced by European Central Bank minutes showing policymakers open to reducing monetary stimulus.

The Bank of Canada is expected to raise rates on Wednesday. Yellen delivers a semiannual monetary policy testimony to lawmakers at 1400 GMT on Wednesday and Thursday. - Reuters

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