Gold gains on Janet Yellen’s stimulus comments

<p>Gold prices rose following Janet Yellen’s comments that stimulus would not yet unwind.</p>

Gold prices rose on Thursday morning (October 15th) after incoming Federal Reserve chairman Janet Yellen said current stimulus programmes are likely to remain in place.

Despite plans to begin unwinding the Fed's monetary stimulus, Ms Yellen said maintaining the US' recovery is vital for the central bank.

Before the Fed can begin cutting back its $85 billion (£52.8 billion) asset buying strategy, Ms Yellen says the country needs to ensure that the economic recovery can ensure job creation is sustainable.

Over the last three days, gold has gained close to two per cent but it is still recovering from a four-week low hit earlier this week.

The dollar weakened following Ms Yellen's comments, which has also been under pressure as decisions as to when the Fed tapering will begin still await.

Ms Yellen needs 60 votes for her to officially take over the Fed when current chairman Ben Bernanke departs in January 2014.

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