* Fed Chair Yellen says to continue measured tapering
* Gold on track for biggest one-day gain in three weeks
* Bullion supported by India's plan to ease import ban
* Coming up: US Federal Budget Wednesday
(Adds details on technicals, equities link, updates prices)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, Feb 11 Gold rose to a
three-month high on Tuesday, gaining nearly 1.5 percent after
incoming Federal Reserve Chair Janet Yellen made it clear she
would not make any abrupt changes to the central bank's
commitment to a measured tapering of bond purchases.
Technical buying also accelerated gains after the metal
crossed above tough resistance at $1,280 an ounce.
Bullion's rally on Tuesday reversed its recent strong
inverse link with equities, which have been pressured by
economic uncertainties and emerging-market jitters. The S&P 500
index climbed 1.3 percent.
In her testimony before the U.S. House Financial Services
Committee, Yellen said she strongly supports the monetary policy
approach driven by her predecessor, Ben Bernanke.
"The overall tone of Yellen's comment is a carbon copy of
the Fed's existing policy under Bernanke, so the market is
relieved that there will be no tightening any time soon," said
Bill O'Neill, partner of New Jersey commodities investment firm
Spot gold was up 1.4 percent at $1,291.51 an ounce by
3:11 p.m. EST (2011 GMT), its biggest one-day gain in three
weeks. Earlier on Tuesday, it hit $1,293.44 - the highest price
since Nov. 14.
U.S. COMEX gold futures for April delivery settled up
$15.10 an ounce at $1,289.80, with trading volume about 20
percent below its 250-day average, preliminary Reuters data
Yellen's testimony comes at a tricky time given two months
of soft employment growth and as a deadline looms on raising the
U.S. government borrowing limit before a possible debt default.
Speculation that the Fed might hold off further reduction of
stimulus had strongly supported gold by keeping interest rates
at rock bottom while stoking inflation fears.
Analysts said, however, a resilient equities market and
improving economic outlook could thwart any further gold rally.
In the physical markets, bullion was also underpinned after
India's trade ministry said it has recommended easing curbs on
gold imports, after a 77 percent drop in imports for January
that helped narrow the country's trade deficit.
India had imposed curbs last year including a record 10
percent duty to discourage gold purchases.
Among other precious metals, silver gained 0.9
percent to $20.21 an ounce. Platinum climbed 0.3 percent
to $1,384.74 an ounce, while palladium rose 0.1 percent
to $715.30 an ounce.
3:11 PM EST LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold APR 1289.80 15.10 1.2 1273.50 1294.40 145,125
US Silver MAR 20.153 0.041 0.2 19.915 20.290 54,422
US Plat APR 1387.80 1.90 0.1 1380.00 1394.90 7,465
US Pall MAR 716.35 -0.40 -0.1 714.20 723.00 3,251
Gold 1291.51 17.22 1.4 1274.18 1293.44
Silver 20.210 0.180 0.9 19.960 20.260
Platinum 1384.74 3.49 0.3 1381.50 1392.50
Palladium 715.30 0.55 0.1 718.50 722.00
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 151,633 166,401 185,409 17.19 -0.20
US Silver 70,658 45,064 56,275 24.57 1.33
US Platinum 7,859 10,943 13,290 19.37 0.94
US Palladium 3,812 4,778 5,596 17.86 -0.33
(Additional reporting by Clara Denina in London, A.
Ananthalakshmi in Singapore; editing by William Hardy and