(RTTNews) - The price of gold was moving higher Friday morning, with the US dollar trading weak after Ben Bernanke's testimony allayed fears of an early withdrawal of monetary stimulus program.
Gold for August delivery, the most actively traded contract, moved up $5.60 to $1,289.80 an ounce. Yesterday, gold settled higher as investors mulled over Federal Reserve Chairman Ben Bernanke's statement before the Senate Banking Committee who once again stressed it was too early to say if the central bank will begin tapering its asset purchase program at its September meeting. Bernanke had earlier said there was no set time line before the central bank to slow down its quantitative easing program.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 936.07 tons from 937.57 tons.
Meanwhile, the U.S. dollar was ticking lower versus the euro, Swiss franc and sterling, while trading flat against the yen.
In economic news from the euro zone, Germany's producer price inflation accelerated in June, and the figure matched economists' expectations, latest data showed. The producer price index increased 0.6 percent on an annual basis in June, following a 0.2 percent gain in May, the Federal Statistical Office said. The growth rate for June was in line with economists' forecast.
The U.K. public sector net borrowing excluding interventions declined to GBP 8.5 billion in June from GBP 11.9 billion last year, data from the Office for National Statistics showed. The ONS said PSNB has been reduced by GBP 3.9 billion of cash transfers from the Asset Purchase Facility Fund to government. If these transfers are excluded then public sector net borrowing in June 2013 was GBP 12.4 billion, data showed.
Elsewhere, the prices of silver and platinum were trading mixed in morning deals.