Gold drops below $1,300

Gold futures on the COMEX division of the New York Mercantile Exchange fell Tuesday as U.S. Fed Chair Janet Yellen started to testify before the Senate Banking Committee.

The most active gold contract for August delivery fell 9.6 U.S. dollars, or 0.73 percent, to settle at 1,297.1 dollars per ounce.

In her semiannual testimony to the Senate Banking Committee delivered Tuesday morning, Yellen said U.S. labor markets are far from healthy and signaled the central bank would not be in a hurry to hike interest rates. She emphasized that the U.S. economy needs to be on solid trajectory before the Fed raises rates.

Retail sales rose by a seasonally adjusted 0.2 percent, or by 0. 4 percent, with the auto sector excluded in June, the U.S. Commerce Department said Tuesday.

Silver for September delivery lost 2.5 cents, or 0.12 percent, to close at 20.889 dollars per ounce. Platinum for October delivery lost 8 dollars, or 0.54 percent, to close at 1,485 dollars per ounce.