Gold fell for the third straight session on Monday, but hovered above Friday's two-week low, pressured by comments from Federal Reserve Chair Janet Yellen that reinforced expectations of an increase to U.S. interest rates this month. Spot gold was down 0.6 percent at $1,226.61 an ounce, having slid on Friday to $1,222.51, the lowest since Feb. 15. U.S. gold futures settled down 0.08 percent at $1,225.50.
Yellen said last week that the Fed was poised to lift benchmark U.S. rates provided jobs and inflation data held up, comments seen as cementing plans for an increase at the Fed's March 14-15 meeting. Markets see a 90 percent chance of a rate increase this month in March. Fed comments have become increasingly hawkish, while investors are focusing on non-farm payrolls due Friday, which will provide a key guidance on Fed’s decision-making. Uncertainty over monetary policy in Europe and geopolitical tensions in North Korea will provide a floor to gold in near term.
On technical front, gold is expected to keep moving downward in near term, approaching the support of the 100-day moving average, where $1,210 might lend some short-lived support.
Silver swung sharply on Monday after big losses recorded last week. The white metal fell 1 percent to $17.78 an ounce, paring Friday’s all gains. On daily chart, silver had fallen below the 200-day moving average, and would remain under pressure by rising expectations over interest rates hike from the Federal Reserve. It is quite likely to fall further if it cannot regain the ground of $18 in near term.

 
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