Gold rises after Bernanke promises action

The price of gold and other precious metals jumped Friday, after Federal Reserve Chairman Ben Bernanke made clear that he expects to take further action to try to boost the economy.

The Fed can try to prop up the economy by buying government bonds, lowering interest rates and other measures. Those moves can lead to inflation. And when investors believe inflation is coming, they often buy gold and other precious metals because they believe they are protections against inflation.

In a speech at the Fed's annual retreat in Jackson Hole, Wyo., Bernanke stopped short of committing the Fed to any specific move. But he said that the central bank will do more, because unemployment is so high and the economic recovery "far from satisfactory."

Gold, palladium and platinum all jumped about 2 percent. Silver jumped more than 3 percent.

All can be traded as precious metals, though silver, palladium and platinum can trade as industrial metals as well since they are used in manufacturing certain products.

Copper, an industrial metal, rose only slightly.

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