Traders and investors patiently waited for the commentary of Ben Bernanke, chief of the U.S Federal Reserve. The precious metal has endured its steepest weekly plunge in more than 90 days this week notched record highs of $1,913.50 per troy ounce just this past Monday. The Bernanke speech, set to begin around 10 a.m. Eastern Standard Time, is likely to influence gold futures.
"Bernanke probably will hint that he is ready to use further stimulus if the economy deteriorates," chief investment strategist Pu Yonghao with UBS Wealth Management told Bloomberg. "People are concerned the probability of recession has increased. Gold is a kind of insurance, to insure against the potential quantitative easing."
At 6:50 a.m. on Friday, gold futures increased 1.36 percent, a $23.90 rise to $1,787.10 per troy ounce.
CNN reports significant anticipation will greet the Bernanke speech as it has been growing all week. The stock market has gained about 3 percent this week, momentum that the news source attributes to investor hopes for growth spurring measures.
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