Gold is trading lower after yesterday's rally declining today from an intraday high of USD1.177.60. In yesterday's statement following the interest rate decision FED chair Janet Yellen said that the FED has not yet decided on the timing of a rate hike but it could happen at any FOMC meeting this year. The bank will have a close eye on international developments before hiking rates. This leaves the door open for a more flexible policy and the option to move later than June.

As a strong U.S. dollar and the prospect for higher U.S. rates weigh on the precious metal - as gold is dollar-denominated and not yield-bearing - yesterday's FED comments lend support to gold.

Gold is currently quoted at USD1,164.50, -0,23% a troy ounce. On Thursday the 22nd of January gold reached a five-month high at USD1,307.40. On Wednesday last week gold traded as low as USD1,147.30, a three-month low.