Gold Steady Around $1205 after Yellen Comments

Gold prices fell slightly on Monday, as the dollar gained traction against major currency rivals, on signs the Federal Reserve is preparing to tighten monetary policy for the first time in six years in 2015.

Fed Chair Janet Yellen indicated on Friday that the U.S. central bank was poised to raise rates this year, with the world’s largest economy set to bounce back from an early-2015 slump.  Higher U.S. interest rates increases the opportunity cost of holding non-yielding bullion.

Spot gold was down 0.2 percent at $1,203.46 an ounce by 1127 GMT, just above a near-two-week low of $1,201.20 hit in the previous session. It posted its biggest weekly drop in a month last week, down 1.4 percent.