Gold price rises ahead of Fed speech

<p>The price of gold was up yesterday.</p>

The value of gold rose yesterday (July 16th) as investors prepared for a major speech to be made at the US Federal Reserve.

Chairman of the body Ben Bernanke is set to give his semi-annual testimony to Congressional committees today and tomorrow, with this event having been eagerly awaited by investors.

Markets around the world were hit last month when Mr Bernanke suggested that the Fed could start to wind down its quantitative easing scheme later in the year.

But stocks have bounced back after officials from the Fed moved to ease these concerns, stating the programme would only be closed if the economic growth in the US holds up.

Gold rose yesterday on the back of the news that the Consumer Price Index (CPI) has increased 0.5 per cent, with analysts having predicted a figure of 0.3 per cent.

Speaking to Reuters, Carlos Perez-Santalla at brokerage Marex Spectron said: "The CPI figure is lower than what the Fed wants, so the gold market sees this as tapering is further away."

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