Moosie - Yellen's comments were not entirely dovish. She played it a dollar each way. First she says that she is "not in a rush to roll back Qualitative Easing" and that "it was important not to start removing the Fed’s current accommodation because the economic recovery is still fragile.” That lifted gold from 1280 to 1293.
But she later went on to say that the program does have costs and “cannot continue forever". This is when the PoG backed off to around 1285.
Overall, there were no real surprises in her testimony - she's a dove and what she said was pretty much expected.
What will help Gold prices is her confirmation that it will be 2014 before taper begins (if it ever does). What is working against Gold is the low inflation experienced by the EC, UK and USA. Gold may well need a bigger pick-up in inflation for a longer-term uptrend but I find it interesting given the very low inflation currently being reported by several large economies that it hasn't sunk lower.
I'm trading off highs and lows through the current range of 1255 to 1325. There is more likelihood IMHO of a breakout to the upside. A little more fear and anxiety is all it needs, and yes that is a matter of not 'if' but 'when'.
BC