Gold rises ahead of Bernanke's testimony

Gold futures on the COMEX division of the New York Mercantile Exchange rose slightly Tuesday ahead of U. S. Federal Reserve Chairman Ben Bernanke's testimony before the House of Representatives and the Senate scheduled for Wednesday and Thursday. The most active gold contract for August delivery rose 6.9 dollars, or 0.54 percent, to settle at 1,290.4 dollars per ounce. The market expects Bernanke to continue emphasizing his earlier views on easy monetary policy, which would be supportive of gold. Strong physical demand from Asia, China in particular, continued to prop up gold prices. Nevertheless, gold price growth has been curbed somehow as the U.S. Labor Department reported Tuesday that the consumer price index (CPI) rose by a seasonally adjusted 0.5 percent in June, in line with economists' expectations. Silver for September delivery gained 9.6 cents, or 0.48 percent, to close at 19.935 dollars per ounce. Platinum for October delivery climbed 3.7 dollars, or 0.26 percent, to close at 1,425.1 dollars per ounce.