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Silver 32.71, Gold 1684.80, Gains On Bernanke Comments
Mar 26, 2012 By Matt Day Of DOW JONES NEWSWIRES

--Comex April gold up $18.70, or 1.1%, at $1,681.10 a troy ounce
--Comments from Federal Reserve chief underline expectations for accommodative policies
--Gold edged higher last week on dollar declines, Iran tensions

NEW YORK (Dow Jones)--Gold futures gained Monday as Federal Reserve chief Ben Bernanke signalled support for the central bank's easy money policies, sending investors looking for alternatives to the U.S. dollar.

Such accommodative monetary policy can boost gold's appeal as a currency hedge by raising concerns that the value of paper currencies might take a hit.

The most actively traded gold contract, for April delivery, was up $18.70, or 1.1%, at $1,681.10 a troy ounce on the Comex division of the New York Mercantile Exchange.

In comments on Monday to the annual conference of the National Association for Business Economics, Bernanke said further significant improvements in the U.S. unemployment rate will require faster economic growth, "a process that can be supported by continued accommodative policies."

The dollar pulled back after the release of Bernanke's prepared remarks, and gold gained $15 an ounce in the span of about 15 minutes. A weaker dollar can boost dollar-denominated gold by making the futures appear cheaper for buyers using other currencies.

The ICE US Dollar Index, which tracks the currency against those of some major US trading partners, on Monday touched its lowest level since March 2.

"It is still all about the dollar's move for the most part," said George Gero, vice president and precious metals strategist with RBC Capital Markets.

Gold futures edged higher last week, taking cues from weakness in the dollar and demand for the metal as a safe haven on worries about a potential conflict in the Middle East.

Oil futures climbed on Friday after a report that Iran's oil exports were expected to fall sharply as Europe and the U.S. ratchet up sanctions targeting the country's nuclear program.

-By Matt Day, Dow Jones Newswires; 212-416-4986; [e-mail]
(END) Dow Jones Newswires
03-26-12 0939ET

http://news.tradingcharts.com/futures/9/2/175959229.html