NEW YORK (TheStreet) -- Gold prices were climbing Thursday as investors showed some confidence that quantitative easing would eventually occur, despite Federal Reserve Chairman Ben Bernanke's signal that it wasn't imminent.
Gold for August delivery was up $12.80 to $1583.60 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1591.50 and as low as $1572.10 an ounce, while the spot price rising $13.20, according to Kitco's gold index.
"I think this is why gold, with the comments that Mr. Bernanke made not yesterday but more the comments he made on Tuesday, [is] kind of leaving the door open for quantitative easing," said Tim Harvey, senior vice president at ETF Securities U.S.
Silver prices for September delivery was up about 26 cents to $27.35 an ounce, while the U.S. dollar index was rising 0.07% to $83.05.
Harvey said the markets are suggesting a need for quantitative easing, especially as investors have seen the Bank of England come up with a bit of its own easing and as China and the European Central Bank have cut rates.
Timing may become a serious hurdle for gold buyers who are expecting a big break from the current trading range. The Fed hasn't taken QE3 off the table, but the deeper the U.S. election cycle goes into 2012 the more the central bank would have to worry about any of its monetary actions being construed as political.
Gold's track upward Thursday in tandem with the U.S. dollar isn't highly unusual, as it may indicate that investors who live in economically troubled areas like Spain, Portugal and Italy are going long on gold and the dollar as trouble in the eurozone persists.
Trading was relatively light on Thursday and the yellow metal is down about 10% this month.
Gold mining stocks were mostly higher Thursday after a streak of declines. Kinross Gold(KGC_) led the group as shares hit $8.10, up 23 cents, or 2.9%, while Agnico-Eagle Mines(AEM_) was at $37.71, up 98 cents, or 2.7%.
Among other mining stocks, Barrick Gold(ABX_), Goldcorp(GG_) and Eldorado Gold(EGO_) were up more than 1%.
