FEDERAL RESERVE STRIVES TO CREATE GROWTH FOR U.S. ECONOMY
Gold rallied this morning with what was reported as a rush of hedge fund buying for the beginning of a new quarter. A number of events this week could affect the price of Gold, but there are two main focal points: An updated United States unemployment report and a European Central Bank policy meeting. “To keep it simple, bad news, of which there is a lot in the euro zone, is good for markets. It means more positive (central bank) stimulus," Societe Generale analyst Robin Bhar said.
Federal Reserve Chairman Ben Bernanke spoke at the Economic Club of Indiana today, stating the Fed’s objectives of price stability and maximum sustainable employment have not changed. Bernanke said, “These goals mean, basically, that we would like to see as many Americans as possible who want jobs to have jobs, and that we aim to keep the rate of increase in consumer prices low and stable.” During the United States’ recession of 2007-09, the Fed lowered borrowing costs to almost nothing and purchased $2.3 trillion in mortgage and Treasury securities to create and sustain growth. Not everyone has been on board with the Fed’s decisions to lower interest rates or to create further easing but Bernanke believes the measures will boost the economy.
At 1:53 p.m. (EDT) the APMEX Precious Metals spot prices were:
- Gold, $1,781.80, Up $8.90.
- Silver, $34.99, Up $0.42.
- Platinum, $1,675.90, Up $9.60.
- Palladium, $645.40, Up $3.60.
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