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Prices of gold futures rose, registering with the second session gain in a row, and rising above the level of $ 1600 per troy ounce, which was due to comments by Federal Reserve Chairman Ben Bernanke to Congress.
Bernanke said the U.S. economy will continue to recover in 2013, but the situation on the labor market and the economy as a whole is weak, and therefore, further mitigation is necessary.
Bernanke's comments indicate that he supports an extension of the Fed's bond purchases by 85 billion dollars. Note that the markets have been concerned that the Fed would curtail program of bond purchases, known as quantitative easing, after in January in the minutes of the FOMC meeting was disquieting committee members regarding the continuation of programs and proposals to reduce the purchase or minimize the program to the end of 2013 year.
We also add that in his speech Bernanke did not mention about the difference of opinion of the commission members FOMC, but touched all the issues that are of concern. Federal Reserve Chairman Ben Bernanke called on the White House and Congress to make adjustments and replace sharp automatic spending cuts, known as sequestration. In the view of the Fed automatic spending cuts, which are expected to come into force on Friday, in order to reduce the deficit can affect the pace of economic recovery. He also said that the sequestration will have a "significant" near the negative impact on economic growth, given the slow pace of recovery.
We also add that support gold prices have presented today data on new home sales in the U.S., which showed a significant recovery in January. Sales volume was significantly higher than the estimates of economists. The Commerce Department reported that sales of new homes rose by 15.6 percent to a seasonally adjusted 437,000 up in January from a revised 378,000 in December. Economists had expected new home sales will show a modest increase at an annual rate of 381 000 369 000, which was originally reported in the previous month.
February futures price of gold on COMEX today has grown, and now stands at 1606.40 dollars per ounce.