Gold gains following Fed Chief Ben Bernanke's comments

London, Jul 18. Gold today swung between gains and drops, following the biggest retreat in almost two weeks, as investors assessed Federal Reserve Chairman Ben S. Bernanke’s comments on the central bank’s asset purchases. Gold was 0.3 per cent higher at USD 1,279.57 an ounce after rising 0.5 per cent and falling 0.1 per cent. Prices slid 1.2 per cent yesterday, the most since July 5. Silver gained 0.4 per cent to USD 19.42 an ounce after a 3.4 per cent drop yesterday, the biggest since June 26. The Fed’s bond purchases “are by no means on a preset course” and will depend on the economy’s performance, Bernanke said yesterday. Gold has declined 6.5 per cent since he signalled the stimulus may slow. Holdings in the SPDR Gold Trust, the biggest gold-backed exchange-traded product, fell to 936.07 metric tons, the lowest since February 2009.