Gold falls back as stocks rally; Yellen checks losses

Singapore (Feb 12)   Gold gave back some of its sharp overnight gains on Wednesday as stocks rallied but was still trading near its highest in three months on assurances from the newFederal Reserve chair that there would be no abrupt changes to US monetary policy.

In her first public comments since becoming Fed chief earlier this month, Janet Yellen emphasized continuity with the
policy approach taken by her predecessor, Ben Bernanke.
 

Gold rallied along with equities on Tuesday, ignoring its inverse correlation with the risky asset class due to some strong technical buying.

But on Wednesday, as stocks continued to add to gains, the metal snapped its three-day
winning streak on lower safe-haven demand.

We seem to be seeing a much more positive outlook towards gold this month with participation also rising a
little bit. But there isn't a lot of conviction in the gains.