Report: Yellen is new Fed chair

The gold price in late trade on Tuesday continued to trade around the $1,320 level showing little reaction to news of a change of leadership at the US Federal Reserve.

The Wall Street Journal is reporting that Vice Chairwoman Janet Yellen is set to be appointed as new chair of the central bank with an announcement as soon as Wednesday.

Yellen is replacing Chairman Ben Bernanke, whose second term runs out in January next year.

Yellen is considered one of the strongest supporters of the Fed's economic stimulus program and a prime architect of the Fed's quantitative easing program.

The bank’s QE program, which has pumped more than $3.6 trillion of easy money into financial markets to date, weakens the dollar and increases the risk of inflation.

From a standing start in December 2008, the Fed's balance sheet is set to top $4 trillion by the end of the year.

The gold price has increased more than 50% since QE1 when the ruling price was $837 an ounce.