Gold News & Info

Source: American Gold Exchange

Austin— Gold gained nearly 1.5% today and the dollar weakened after Fed Chairman Ben Bernanke's testimony before the Senate Budget Committee reiterated his pledge to keep rates near zero through late 2014. Gold was also supported by renewed optimism that a Greek debt deal may soon be approved, which is also seen as further undermining dollar strength. And the Financial Times reported that China's gold imports in 2011 more than tripled, highlighting the explosive demand for gold in the world's most populace nation.

At the Comex close: April gold gained $23.50 to $1,748.40; March silver rose by 44 cents to $34.19; April platinum added $25 to $1,654.80; and laggard March palladium picked up $3.20 to $709.15 an ounce.

After last week's strong jobs report, many wondered whether the Fed would hold rates near zero until late 2014 as promised, and whether the door was still open for QE3 this spring. That uncertainly was largely put to rest when Bernanke reiterated the Fed's low-rate pledge in the Senate today, saying the economy remains "vulnerable to shocks" and the labor market a "long way" from normal. His testimony about the economy's fragility echoed other statements he's made in recent weeks, including a late-January news conference when he emphasized that the Fed "is prepared to provide further monetary accommodation" and additional bond buying is "an option that is certainly on the table." Gold followed QE1 and QE2 with gains of 44% and 32%, respectively, over the ensuing twelve months.