Gold gained more than a percent today to close at an all-time high above $1,450 an ounce. Silver also rose to hit a 31-year high to $39.12 an ounce.
“Bernanke’s comment makes inflation a more real event in the United States. He at least acknowledged the fact that the Fed needs to monitor inflation very closely, and that spooked investors into gold,” said Mark Luschini, chief investment strategist at broker-dealer Janney Montgomery Scott.
A sharp increase in other commodity prices including oil, corn, and grain increased gold’s attractiveness as a hedge. Concern over growing violence in the Middle East and supply concerns helped drive commodities higher.