Gold rose in New York for a second straight day after Federal Reserve Chairman Ben S. Bernanke offered no plan to provide further stimulus for the economy.
While Bernanke said the central bank has the tools to spur growth, he refrained from outlining a plan for a third round of so-called quantitative easing. The Fed pledged on Aug. 9 to keep the benchmark interest rate between zero and 0.25% through at least 2013 to help stimulate the economy. The next policy meeting is Sept. 20. Gold futures slumped as much as 11% in the three days through yesterday, after touching a record $1,917.90 U.S. an ounce on Aug. 23.
Gold futures for December delivery gained $21.10, or 1.2%, to $1,784.30 U.S. at 11:10 a.m. ET on the Comex in New York. Prices are still headed for the first weekly loss in eight weeks.
Gold topped $1,800 U.S. following the speech as equities extended declines. The Standard & Poor’s 500 Index dropped as much as 2% before erasing losses.
Gold is in the 11th year of a bull market, the longest winning streak since at least 1920 in London, as investors seek to diversify away from equities and some currencies. Before this week, gold climbed for seven consecutive weeks, the longest rally since April 2007.
Silver futures for December delivery fell 0.3 cents to $40.79 U.S. an ounce on the Comex.
Platinum futures for October delivery gained $2.50, or 0.1%, to $1,824.90 U.S. an ounce on the New York Mercantile Exchange. Palladium futures for December delivery rose 30 cents to $753.50 U.S. an ounce on the Nymex.
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