Gold advances from two-month low before central bankers speak

Written by PTI | London | Updated: Aug 22 2014, 23:19pm hrs
Gold rose, trading above a two-month low, as investors awaited speeches by Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi today at a meeting of central bankers.

Gold rose 0.3 per cent to USD 1,281.13 an ounce. The metal yesterday dropped to USD 1,273.14, the lowest level since June 18, as minutes of the Fed's last meeting signalled that policy makers may raise interest rates earlier than expected.

Silver also rose 0.5 per cent to USD 19.54 an ounce. The metal dropped yesterday to USD 19.31 an ounce, the lowest since June 12.

Speculation that the US central bank would cut stimulus as the economy recovered fueled a 28 per cent drop in gold prices last year.