Gold future drops below USD 1300

Gold futures on the COMEX division of the New York Mercantile Exchange fell as US Fed Chair Ms Janet Yellen started to testify before the Senate Banking Committee.

The most active gold contract for August delivery fell USD 9.6 or 0.73% to settle at USD 1,297.1 per ounce.

Ms Yellen said that US labor markets are far from healthy and signaled the central bank would not be in a hurry to hike interest rates. She emphasized that the US economy needs to be on solid trajectory before the Fed raises rates.

The US Commerce Department said that retail sales rose by a seasonally adjusted 0.2% or by 0. 4% with the auto sector excluded in June.