Gold weakens before Yellen's testimony

Gold prices dipped on Wednesday as markets wait for the testimony of the Fed chief Janet Yellen ahead of Congress to comment on the current developments of the financial markets. 

Gold last traded at $1,190.50 an ounce with an intraday high at $1,194.30, and a low at $1,181.20, which comes after gold hit an eight-month high this week at $1,200.80. 

Volatility in gold prices today came about as stability returned to financial markets, with European stock indices surging, diminishing the appeal of safe havens like government bonds and gold. 

On the other hand, crude oil prices began the day higher, before reversing lower which helped global stocks, in turn lowering demand for gold. 

Gold remains near its highest level in eight months, pointing to the persisting fears in the markets, and that the current dip in the precious metal's prices could be just a temporary effect from the financial market's jump today.  

The dollar index was also volatile in its trading but inched higher before Yellen's testimony today, which could clear the picture over the future of U.S. interest rates in 2016.