Gold Prices Rise to $1,397.51 an Ounce

Gold prices rose May 22 due to a falling US dollar and US Federal Reserve officials diminishing investors’ fears that it would reduce its bond-buying program, Reuters reported. Increased physical demand for the metal in China also caused gold prices to rise.

Spot gold hit a session high of $1,397.51 an ounce today, an increase of as much as $22.36. Traders said gold could soon reach as high as $1,425 an ounce, according to the source.

U.S. gold futures for June delivery also were up today to $1,393.50 an ounce, an increase of $16.72.

The rise in gold prices come after the metal suffered declines in eight out of the nine last sessions, Reuters reported. Gold hit $1,338.95 an ounce on May 20 – the lowest level since April 16.