The gold price soared over 3% yesterday following comments from Fed Chair Janet Yellen, continued violence in Iraq and a massive buy order sparked the market into life.

The price was climbing steadily throughout the morning and then around lunchtime prices surged after 2.9 million ounces was traded in under 15 minutes.

The gold price gained early momentum after the Federal Reserve announced their intention to keep long term interest rates at near historic lows. As a result the U.S. dollar fell to a 12 month low against the pound and gold began its rise. Historically the U.S. dollar and gold trade in opposite directions as gold is used as a hedge against inflation.

As a result of the Federal Reserve’s quantitative easing program the balance sheet at the Fed now exceeds $4 trillion. Combined the central banks of Japan, England, Europe and the U.S. have injected $15 trillion into the system since the start of the economic crises.

Silver increased 4.1% to $20.68 per ounce and both palladium and platinum finished in positive territory.