The Wall Street Journal reported that gold futures rose to their highest level this year, partially as a result of a US central bank president’s suggestion that bond buying should be continued until next year.
As quoted in the market news:
The most actively traded contract, for December delivery, traded up $4.70, or 0.3%, at $1,778.60 a troy ounce in late morning trade Monday on the Comex division of the New York Mercantile Exchange.
Futures hit $1,794.40 a troy ounce, the highest intraday price since mid-November of 2011, in the minutes after a key supporter of the Fed’s new bond-buying program made the case for its continuation through next year. Speaking on CNBC, Charles Evans, president of the Chicago Federal Reserve Bank, said the Fed’s latest effort to jump-start the economy is “going to be effective. In my opinion, we continue those purchases through 2013.”