Gold prices fell Monday morning as the dollar consolidated gains against the euro, weighing on commodities in general.

Gold rallied last week, but comments from Federal Reserve Chair Janet Yellen late Friday may have set the precious metal up for weakness heading into April.

An interest rate hike “may be warranted” this year, as long as the U.S. economic recovery is sustained, Federal Reserve Chairman Janet Yellen said Friday afternoon.

“With continued improvement in economic conditions, an increase in the target range for that rate may well be warranted later this year,” Yellen said at a San Francisco Fed conference.

Gold for May delivery was down $16 at $1185 an ounce this morning on the New York Mercantile Exchange.

In economic news, Eurozone economic sentiment rose for the fourth successive month to its highest level in nearly four years.

The material has been provided by InstaForex Company –