The gold price has racked up its fourth straight day of gain in early European trading today after Yesterday’s speech by Fed president Janet Yellen.

In an about turn from previous speeches, Yellen noted that future rate rises are not a done deal and very data dependant, especially on the question of inflation.

It seems that the trigger for any future rate increases from the Fed is inflation hitting 2 percent which the Fed president acknowledged had not happened yet.

“It’s premature to reach the judgment that we’re not on the path to 2 percent inflation over the next couple of years,” she said. “We’re watching this very closely and stand ready to adjust our policy if it appears the inflation undershoot will be persistent.”

This may be just the news that gold needed as we can see on the chart. The precious metal is now making a run for the $1,223 level which it hit five days ago but then faced stiff resistance.

This time Yellens speech may be enough to push gold higher as the market had been expecting more rate cuts and a much more bullish tone but it seems that is a distant memory.

It could head up to the next critical level which is $1,240 which may become the next support level for gold to go even higher.