Gold hits 1-month high above $1,335

NEW YORK (July 22) Gold advanced above $1,300 an ounce to a one-month high in New York as speculation the Federal Reserve will maintain stimulus and rising oil prices spurred demand for the metal.

Bullion futures rose 1.3 per cent last week, capping the first back-to-back weekly gains since May, after Fed Chairman Ben S. Bernanke indicated that it’s too early to decide whether to begin scaling back bond purchases in September.

Gold for December delivery rose 1.7 per cent to $1,316.60 an ounce in early trading on the Comex in New York. Gold for immediate delivery in London gained 1.6 per cent to $1,316.79.

Silver for September delivery gained 2.3 per cent to $19.915 an ounce in New York.

Palladium for September delivery added 0.2 per cent to $751.05 an ounce, after reaching $753, the highest since June 13.