Bernanke’s Announcement Gives Gold a Boost

Gold prices hit their highest level in three weeks July 17 following an announcement by Federal Chairman Ben Bernanke that suggested the central bank could decide not to slow its stimulus program later this year.

Gold futures for August delivery reached $1,293.90 an ounce on the Comex in New York – a rise of $3.50 from the previous session. The price fell to $1,283.80 an ounce one minute before Bernanke made his comments today, Kitco reported.

Bernanke said, however, the central bank could decide to continue the stimulus program if the U.S. economy did not improve.

“Our asset purchases depend on economic and financial developments, but they are by no means on a preset course,” he said, according to Reuters.

Spot gold hit $1,294.26 an ounce, a rise of $2.59.