‘Yellenomics’ to support gold as fund outflows subside

But physical demand – which remains subdued in top buyer India due to government-imposed import limits – may keep a lid on prices, the survey showed.

Yellen at her Senate confirmation hearings last week defended the U.S. central bank's stimulus to spur growth and said efforts to boost hiring were an "imperative," reinforcing investors' expectations that U.S. monetary stimulus may be in place for an extended period, Reuters reported.

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"Yellen has confirmed what some of us have suspected – that stimulus will continue for some time to come," said Gaurav Sodhi, Resources Analyst at Intelligent Investor. "Gold prices have not yet adjusted to this view and I'm bullish."

Stimulative U.S. monetary policy tends to cheapen the dollar, making gold more affordable for buyers paying in other currencies.

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