Gold jumps above $1300 on Fed and Iraq

Gold futures on the COMEX division of the New York Mercantile Exchange pushed above 1,300 U.S. dollars Thursday on Iraq and signals given by U.S. Federal Reserve Chairwoman Janet Yellen.

The most active gold contract for August delivery rose 41.4 dollars, or 3.25 percent, to settle at 1,314.1 dollars per ounce.

The U.S. Fed chief said Wednesday afternoon at a press conference following the U.S. central bank's policy meeting that recent pickup in consumer price index is "noisy," while emphasizing that inflation is evolving in line with the Fed's expectations, dismissing the possibility of tightening policy based on data indicating higher inflation. Continued low interest rates are making gold and other alternative assets more appealing.

Traders were watching as President Barack Obama announced that the U.S. will send 300 military advisers to Iraq as violence escalates in the Middle East country. Analysts believe that Iraq is a background factor contributing to gold's rise.

The U.S. Department of Labor released their jobless claims report Thursday, showing that initial jobless claims declined by 6, 000 to 312,000 in the week ending June 14. This was on par with analyst expectations.

Silver for July delivery gained 87 cents, or 4.40 percent, to close at 20.648 dollars per ounce. Platinum for July delivery gained 23.7 dollars, or 1.63 percent, to close at 1474.5 dollars per ounce.