Gold prices were down on Thursday on a strong dollar after Federal Reserve Chair Janet Yellen advocated lifting US interest rates gradually. Spot gold was down 0.1 percent to $1,202 per ounce by 0600 GMT, after dropping to as much as $1,197.31. The bullion hit an eight-week high of $1,218.64 on Tuesday.
US gold futures fell as much as over 1 percent to $1,197.10. The dollar index, which measures the greenback against a basket of currencies, rose 0.3 percent to 101.230.
With the US economy close to full employment and inflation headed toward the Federal Reserve's 2 percent goal, it "makes sense" for the US central bank to gradually lift interest rates, Fed Chair Janet Yellen said on Wednesday.
"(Yellen's) speech was interpreted as being bearish for gold," said INTL FCStone analyst Edward Meir, adding that the metal could be under more pressure later in the day as the Fed chair speaks on US monetary policy again on Thursday.
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