Investing.com - Gold prices extended Thursday's gains into Friday after Federal Reserve Chairman Ben Bernanke told lawmakers that any decision to taper the pace of its monthly asset purchases that weaken the dollar to spur recovery won't signal the arrival of tighter monetary policy.
Gold and the dollar tend to trade inversely with one another, especially in times of loose monetary policies.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were up 0.67% at USD1,292.85 a troy ounce in U.S. trading on Friday, up from a session low of USD1,281.45 and down from a high of USD1,297.05 a troy ounce.
Gold futures were likely to find support at USD1,269.45 a troy ounce, Wednesday's low, and resistance at USD1,299.45, Wednesday's high.
Bernanke told U.S. lawmakers in his semi-annual congressional testimony this week that the Fed's bond-buying program will remain in place for the foreseeable future, and even though monetary authorities may begin to taper later the program this year if the economy improves, policy will remain loose for the longer term.
Stimulus programs such as the Fed's USD85 billion monthly asset-purchasing program tend to weaken the dollar to spur recovery, making gold an attractive hedge.
A weaker dollar, also the product of growing expectations for the Fed to take its time unwinding stimulus tools, pushed the yellow metal higher in quiet trading on Friday as well.
Elsewhere on the Comex, silver for September delivery was up 0.37% at USD19.460 a troy ounce, while copper for September delivery was up 0.28% and trading at USD3.140 a pound.
Gold and the dollar tend to trade inversely with one another, especially in times of loose monetary policies.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were up 0.67% at USD1,292.85 a troy ounce in U.S. trading on Friday, up from a session low of USD1,281.45 and down from a high of USD1,297.05 a troy ounce.
Gold futures were likely to find support at USD1,269.45 a troy ounce, Wednesday's low, and resistance at USD1,299.45, Wednesday's high.
Bernanke told U.S. lawmakers in his semi-annual congressional testimony this week that the Fed's bond-buying program will remain in place for the foreseeable future, and even though monetary authorities may begin to taper later the program this year if the economy improves, policy will remain loose for the longer term.
Stimulus programs such as the Fed's USD85 billion monthly asset-purchasing program tend to weaken the dollar to spur recovery, making gold an attractive hedge.
A weaker dollar, also the product of growing expectations for the Fed to take its time unwinding stimulus tools, pushed the yellow metal higher in quiet trading on Friday as well.
Elsewhere on the Comex, silver for September delivery was up 0.37% at USD19.460 a troy ounce, while copper for September delivery was up 0.28% and trading at USD3.140 a pound.