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NEW YORK ( TheStreet ) -- Gold prices staged a rally, breaking an almost three-day selloff, after Ben Bernanke left the door open for more monetary easing. Gold for December delivery added $34.10 to close at $1,797.30 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,800 and as low as $1,759.50 while the spot gold price was adding $35.80, according to Kitco's gold index. Silver prices settled up 20 cents at $40.95 an ounce. The U.S. dollar index was down 0.57% at $73.82 while the euro was up 0.83% vs. the dollar.
Federal Reserve Chairman, Ben Bernanke, offered no surprises in his speech at Jackson Hole Friday, but he did allow the possibility for further intervention. Bernanke said the Fed is willing to step in if needed to trigger a stronger recovery, but barely discussed any monetary policy. The Fed's policy meeting in September is now two days instead of one, which indicates stimulus is on the table but whether or not there will be an agreement or policy shift is a different story.
"The debt problems in the U.S., Europe and Japan are real," says Don Dion, founder of Dion Money Management and senior contributor for TheStreet. "They will not be solved any time soon. Gold will remain a safe haven until these issues are resolved" News that the U.S. grew only 1% in the second quarter versus the 1.3% previously reported also underscored double dip recession fears. Hurricane Irene is also picking up steam and starting to slam the east coast. Its path is expected to extend from North Carolina to Canada. Natural disasters or events of this kind are also another reason some investors buy gold, as a panic hedge. Gold mining stocks were volatile but headed higher. Kinross Gold ( KGC) was up 1.93% to $17.39 while Yamana Gold ( AUY) was adding 1.48% at $15.76. Other gold stocks, Agnico-Eagle ( AEM) and Eldorado Gold ( EGO) were trading higher at $67.80 and $19.24, respectively. Miners were also in the spotlight Friday as Peru raised taxes on the industry by $1.1 billion, which was much less than expectations. With Hugo Chavez, president of Venezuela, nationalizing gold mines, companies in precarious parts of South America and Africa could have been met with a similar fate or much higher taxes. This certainty coming out of Peru eliminates this risk.
-- Written by Alix Steel in New York. >To contact the writer of this article, click here: Alix Steel. >To follow the writer on Twitter, go to http://twitter.com/adsteel.