Gold slipped towards the previous day’s four-month low on Thursday as the Federal Reserve’s reiteration that US interest rates were likely to rise this year pushed the dollar index to a six-week high.

Following Yellens comments, the dollar added about one percent over the past two sessions, though it has pulled back a few 0.2 percent as of 09:02 BST today.

The most actively traded contract, for August delivery, was recently down $13.50, or 1.2%, at $1,130.40 a troy ounce on the Comex division of the New York Mercantile Exchange. This was the lowest close since April 1, 2010.

“Demand is sluggish. The Chinese would rather invest in the stock market, the property market, than in gold”.

“It’s hard to give any reasons to buy gold at the moment”, Bill O’Neill, a broker at Logic Advisors, said as quoted by The Wall Street Journal.

“It’s an asset that does better when everything goes to hell and doesn’t do so great when the United States economy is perking up”, Bart Melek, senior commodities strategist with TD Securities in Toronto, said. Its reserves rose 57%, and it is now the fifth-largest holder of gold.

The dollar climbed to a seven-week high versus a basket of currencies, dragging down gold.

But those risks failed to materialise and the global economic landscape improved, leading many investors to shed their gold holdings.

On Friday, data showing higher inflation and a jump in housing starts dovetailed with these expectations, weighing on gold prices.

Yellen said on Thursday she was open to raising a threshold for determining a bank’s systemic importance and indicated that US lenders had made progress in their submissions of so-called living will plans this month. The US central bank closed the book on such programs in October 2014.

Premiums for physical gold on the Shanghai Gold Exchange picked up slightly to $2-$4 an ounce over the spot price, although analysts say a slowing economy could cap demand from China, the world’s top gold consumer.

“Gold is now trading below the long-term basing uptrend made up of the November and March lows, with further downside in prospect if the dollar gains further, or Treasury yields rise”.