CHICAGO, Aug. 31 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose to close at a five-month high Friday, as comments from U.S. Federal Reserve Chairman Ben Bernanke indicated that the central bank was likely to introduce more quantitative easing policies.
The most active gold contract for December delivery jumped 30.5 U.S. dollars, or 1.84 percent, to settle at 1,687.6 dollars per ounce.
Going into the Labor Day holiday weekend, gold settled at its highest level since late March, and closed out August with a monthly rise of nearly five percent.
Traders cheered remarks from Chairman Ben Bernanke at a Federal Reserve conference in Jackson Hole, Wyoming Friday morning, as Bernanke said he remained concerned about the "far from satisfactory" U.S. economic growth, and labor market in particular.
"Taking due account of the uncertainties and limits of its policy tools, the Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor-market conditions in a context of price stability," Bernanke said, indicating the Fed was ready and willing to do more.
Talk of more economic stimulus measures from the Fed has dominated the gold trade for months, and the market sharply rose on the session. Gold takes support from economic stimulus measures, as the precious metal traditionally gains on fears of inflation.
Additionally, outside market forces were overwhelmingly positive. U.S. equities and crude oil soared with Bernanke's comments, while the dollar conversely fell. A weaker greenback supports commodities, as it makes them less expensive for holders of other currencies.
Silver for December delivery sharply rose 99.6 cents, or 3.27 percent, to close at 31.442 dollars per ounce.