Gold falls

Reuters

Bengaluru

Gold fell below $1,200 for the first time in more than three months on Monday, as the dollar hit its highest since end-April against the yen after U.S. Federal Reserve chief Janet Yellen said the central bank should raise interest rates.

The Fed should increase interest rates "in the coming months" if the economy picks up as expected and jobs continue to be generated, Yellen said on Friday, bolstering the case for a rate hike in June or July.

Gold was down 0.9 percent at $1,201.41 per ounce as of 0634 GMT, after earlier touching $1,199.60, its lowest since Feb. 17. U.S. gold was 1 percent lower at $1,201.40. 

The dollar on Monday rose above 111.00 yen for the first time since late April, with the move underpinned by comments from Yellen at the end of last week.

"After $1,200, gold will try to break $1,160," said William Wong, assistant head of dealing at Wing Fung Precious Metals in Hong Kong. "I think the market will be quieter today as U.S. and the UK have a holiday.