Precious-Gold held gains on Wednesday after the new Fed Chairman Janet Yellen said she would continue with stimulus.
The yellow metal rose to three-month high on Tuesday after Yellen said at her first Congressional testimony “recovery in the labor market is far from complete."
On the other hand, Yellen said she would keep on cutting stimulus, but highlighted that purchases are not on a preset course.
She illustrated that the pace of stimulus reduction would depend on the progress in the economy.
"These observations underscore the importance of considering more than the unemployment rate when evaluating the condition of the U.S. labor market," Yellen said to ease speculations the Fed may ease the pace of stimulus taper after the recent lower than forecast nonfarm payrolls data.
The focus in the coming period would remain on U.S. data as well as any comments from Fed officials concerning monetary policy.
Gold may now lock its sixth weekly gain out of seven after it benefited from haven demand as investors damped equity markets on emerging markets rout.
After the breach of important resistance levels over the previous weeks, the turn is now on $1300 levels, which may push the metal down again.
The yellow metal, meanwhile, is trading around $1286.91 an ounce after hitting a high of $1290.83 and a low of $1284.02.
The U.S. dollar inched down against a basket of major currencies to hover around 80.68 after opening at 80.70.
Crude oil for March’s delivery edged up to trade around $100.58 a barrel after setting a low of $100.20.