According to the latest figures released, gold for August delivery rose $6.70 or 0.5 per cent to settle at $1,284.20 per troy ounce on the Comex division of the New York Mercantile Exchange.

The gold futures rose on Thursday following a testimony by Federal Reserve Chairman Ben Bernanke before the senate. Mr. Bernanke said that there is no timeframe for the rolling back of the fiscal stimulus package. The Federal Reserve officials are trying to calm the situation by convincing investors that the Federal Reserve will not suddenly withdraw stimulus package that has helped the US economy survive the financial crisis by keeping the borrowing costs low. The reserve will continue to provide stimulus to support the recovery of the economy but has indicated that it will begin a gradual roll back.

The stimulus package by the Federal Reserve have been able to keep the interest rates low and this convinced investors to buy gold as a hedge against perceived risks including higher inflation and a weaker dollar. Gold prices are now expected to fall as the Federal Reserve will start the rollback of its fiscal stimulus package during the coming years.