Fed chief Janet Yellen's comments boosts bullions

Gold hits a more-than-three-month high on Tuesday

Bullion prices ended higher on Tuesday, 11 February 2014 at Comex. Gold prices ended the U.S. day session with good gains and hit a more-than-three-month high on Tuesday. The market was boosted by non-threatening comments made by Fed chief Janet Yellen.

Gold for April delivery climbed $15.10, or 1.2%, to settle at $1,289.80 an ounce on the Comex division of the New York Mercantile Exchange after rising as high as $1,294.40.

March silver, which briefly traded lower, closed up 4 cents, or 0.2%, at $20.15 an ounce.

Gold futures climbed on Tuesday as traders took in Federal Reserve Chairwoman Janet Yellen's testimony on monetary policy to the House Financial Services Committee, lifting the metal's tally to a rise of more than 3% in five trading sessions.

The highlight during U.S. trading hours Tuesday was Yellen's inaugural testimony on monetary policy to the Congress. Traders and investors examined closely her morning remarks and prepared text. Yellen signaled that the central bank will remain on the loose monetary-policy path laid out by Ben Bernanke. Yellen said the Fed would pause from its path to slowly exit its bond-buying program if there was a significant change in the economic outlook.

News reports overnight said demand for physical gold from China is on the rise, following that country's Lunar New Year holiday.

Year to date, gold futures are up over 7% after finding some safe-haven buying last month.

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