Gold prices reach 2-month high

London (June 22)  The dollar fell after Federal Reserve chief Janet Yellen on Wednesday said the US economy had picked up after the first quarter’s contraction. However, she also downplayed a pickup of inflation as any sign of a need to tighten monetary policy.

Elsewhere, the “instability in Iraq is raising concern that the whole region is at risk of falling into a sectarian war which could materially affect the supply of oil and as such gold once more offers a safe haven refuge for investors”, the bank added in a client note.

By Friday on the London Bullion Market, the price of gold jumped to $1,312.50 an ounce from $1,273 a week earlier.
Silver increased to $20.62 an ounce from $19.58.

On the London Platinum and Palladium Market, platinum climbed to $1,456 an ounce from $1,437.
Palladium advanced to $829 an ounce from $816.

Base metals: Prices rose across the board, with zinc reaching a 16-month high at $2,179 a tonne on Friday.