NEW YORK, Jan 19: After a selloff towards $1,800 an ounce, gold is up on some bargain-hunting with prices back above $1,830 despite a higher US dollar on Tuesday, report agencies.
The markets were closed Monday in recognition of Martin Luther King Jr. Day.
With the US dollar in control of gold's price moves, this week's focus is on the designated new U.S. Treasury Secretary Janet Yellen's testimony scheduled for Tuesday. Markets are zeroing in on Yellen's comments about the future of the U.S. dollar policy, according to analysts.
"The dollar has been working gradually higher over the weekend and part of this may be to do with the fact that Janet Yellen, Treasury Secretary-in-waiting, is due to testify on Capitol Hill tomorrow. She is expected to say that she does not favour a deliberate weakening of the dollar, preferring instead to see the currency valued by free-market movements. This, in principle, is dollar-supportive in that it is a change of policy, said StoneX head of market analysis for EMEA and Asia regions Rhona O'Connell.
The impact on gold will be determined by how much and in which direction the US dollar moves in response, said Commerzbank analyst Carsten Fritsch.
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