Gold futures ended higher Friday, as the yellow metal continued to benefit a day after chief Ben Bernanke unleashed a program to buy US$40 bln of assets per month until the U.S. economy shows clear signs of recovery.
The central bank extended the ultra low federal funds rate through at least mid-2015 and said it will keep "Operation Twist" in place. This policy consists of swapping short-dated securities for longer-term securities, as well as reinvesting the proceeds of maturing securities, so the central bank will be adding $85 billion of long-term securities each month through the end of the year.?
Global equities rallied on the back of the news.?
Gold for December delivery rose 60 cents to settle at $1,772.70 an ounce on the Comex division of the New York Mercantile Exchange, its highest in nearly seven months.?Gold closed up 1.9% for the week.?
The news of the bond-buying program provided a boost for gold, which benefits from fears of currency debasement and is seen as a safe haven.?
Oil futures on Friday also rose to $100 a barrel for the first time since May and closed the session not far below this level.?
Crude for October delivery ended up by 69 cents to $99 a barrel, as unrest in the Middle East and North Africa also sparked worry about supplies, with demonstrations this week in Libya, Egypt and Yemen taking place against a video considered an insult to Islam.
Crude had a weekly gain of 2.7%.
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