Gold price hones in on $1,300 on Yellen comments, Chinese demand surge.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery – the most active contract – last traded at $1,290.60 an ounce, up nearly $16 from yesterday's close after rising steadily throughout the trading day.

Gold hit an intra-day high of $1,294.40 shortly before lunchtime and traders point out that breaching technical hurdles at $1,292 and $1,308, could trigger a series of gains.

Yellen told lawmmakers she expects "a great deal of continuity" in the Fed's approach to monetary policy, but left the door open to pause the tapering of $65 billion a month asset purchases under its quantitative easing program should the economic outlook deteriorate.

Yellen was one of the chief architects of the stimulus program that is tied to the US unemployment rate, and two disappointing jobs reports in December and January have strengthened the hands of the doves on the Federal Open Market Committee.

The US has not been alone in printing money and together with the Bank of Japan, the European Central Bank and the Bank of England, more than $10 trillion is now sloshing around in the system.

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