Gold gains as US dollar weakens

The price of gold was higher Friday on the possibility that the US dollar will weaken more, after it lost value on comments from Federal Reserve Chairman Ben Bernanke at a meeting of central bankers from around the globe being held this weekend in Jackson Hole, Wyoming.

Mr. Bernanke said that the government will do whatever it can to avoid deflation and make sure economic recovery continues in the United States, but he did not give any particulars regarding plans to help growth.

In addition, new data showed that the US economy grew 1.6 percent in the second quarter, more than had been anticipated, but much less than the 3.7 percent growth in the first quarter, providing another piece of evidence that the recovery has slowed.

December gold added 20 cents to $1,237.90 per troy ounce, to send gold 0.7 percent higher this week, the fourth consecutive week of gains for the precious metal.

September silver was up as well, adding 6 cents to $19.04 per troy ounce after going as high as $19.34 per troy ounce earlier in the session.

Also seeing gains were September palladium contracts, which gained 55 cents to $503.05 per troy ounce on the session, but October platinum dropped $2.90 to $1,537 per troy ounce.

Among base metals, September copper was up 6 cents on the session, to $3.36 per pound in New York trade, its highest close in three weeks.