Gold price received a boost yesterday from Federal Reserve Chairman Ben Bernanke, who reiterates his cautious outlook on the state of the U.S. economy

The gold price held near $1,645 per ounce Tuesday morning as the U.S. dollar stabilized against a basket of foreign currencies.  The spot price of gold reached an overnight high of $1,655.43, but pared its gains as U.S. financial markets opened.  The SPDR Gold Trust (GLD), the world’s most liquid gold price proxy, rose $0.41, or 0.3%, to $159.78 per share.

The gold price received a boost yesterday from Federal Reserve Chairman Ben Bernanke, who reiterates his cautious outlook on the state of the U.S. economy.  Although the majority of his comments related to regulation of the financial industry, Bernanke noted at the 2012 Federal Reserve Bank of Atlanta Financial Markets Conference in Stone Mountain, Georgia that “About three and a half years have passed since the darkest days of the financial crisis, but our economy is still far from having fully recovered from its effects.”
Commentary from analysts at Morgan Stanley provided support for the price of gold as well on Monday.  In a note to clients, the firm wrote that “Negative real interest rates, the prospect of further unconventional monetary policy in the US and Europe to confront uncertainties on the growth outlook, and heightened political tensions in the Middle East are all expected to underpin strong investment demand.”

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