Gold is currently at $1,100.80 (-0.30%). On Monday the precious metal advanced significantly as comments from Federal Reserve officials questioned the likeliness of a rate hike in September. Federal Reserve Vice Chairman Stanley Fischer said on Monday that the labor market improved and got close to full employment. At the same time he noted that inflation remained weak. Both employment and inflation are closely watched by policymakers and progress in these spheres will determine the data-dependant rate increase.

This morning bullion slid as the People's Bank of China decided to devalue the yuan. Top consumer China accounts for nearly a third of global demand for the precious metal. A weaker yuan will make gold more expensive for Chinese importers.