FED CHAIRMAN’S ‘GRAVE CONCERN’ STATEMENT SENDS GOLD, SILVER CLIMBING
In his speech from Jackson Hole, Wyo., on Friday morning, Federal Reserve Chairman Ben Bernanke said, “The stagnation of the labor market is a particularly grave concern because persistently high levels of unemployment will wreak structural damage on our economy that could last for many years.” He also said that although you must weigh the costs of further stimulus, these costs seem manageable. All in all, the markets reacted as if the Fed was paving the way for more monetary easing. Now that the Jackson Hole speech has been delivered, Europe will again take front and center. There are some key events taking place in September.
Markets are still sorting out European Central Bank President Mario Draghi’s sudden cancellation of a speech he was supposed to make at Jackson Hole. The speech was advertised well in advance and then canceled on the eve of the event. Is it that he had nothing to say? Or was it that what he had to say might have upstaged Bernanke? It has been in the news that German Central Bank Chief Jens Weidmann has threatened to quit on several occasions due to his opposition to Draghi’s new bond purchasing plan. Weidmann has expressed great displeasure at plans to lower Italian and Spanish borrowing costs through bond purchases. Draghi made a vow July 26 to do whatever it takes to save the euro, and the world still awaits what that actually means.
The world will need to wait until September for answers, as we close out August and enter the Labor Day weekend. Enjoy!
At 5 p.m. (EDT), the APMEX Precious Metals prices were:
- Gold - $1,692.20, Up $36.60.
- Silver - $31.79, Up $1.34.
- Platinum - $1,541.40, Up $36.70.
- Palladium - $629.50, Up $13.10.
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