Closing Gold & Silver Market Report – 2/26/2013

GOLD HAS LARGEST ONE-DAY JUMP OF 2013

In response to Federal Reserve Chairman Ben Bernanke’s comments today about the Fed’s ongoing quantitative easing program, the Gold price experienced its largest one-day jump of 2013. Appearing before the Senate Banking Committee this morning, Chairman Bernanke indicated that he supported continuing the current bond-buying program. Gold has historically benefited from such policies due to concerns that easing will lead to a weaker dollar and inflation, which Gold is often used as a hedge against. Gold ended the day above $1,600 per ounce. Silver and Platinum ended the day up as well, with Palladium as the only metal that dropped.

With only three days until the $85 billion in spending cuts known as “the sequester” are scheduled to take effect, there were no signs of any negotiations today between Republican leaders and the White House. In a speech at the nation’s only manufacturer of aircraft carriers for the Navy, President Obama warned of the effects of the sequester’s cuts, saying, “The impact of this policy won’t be felt overnight, but it will be real. It’s not just restricted to the defense industry.” Meanwhile, House Speaker John Boehner said in a press conference today that the Republican-led House of Representatives won’t take any action until the Senate’s Democratic majority passes a plan. According to the nonpartisan Congressional Budget Office, unless a fiscal agreement is reached in the next few weeks, budget reductions will result in a 0.6 percent reduction in economic growth this year.

At 5:06 p.m. (EST), the APMEX precious metals spot prices were:

• Gold, $1,615.30, Up $27.20.
• Silver, $29.44, Up $0.38.
• Platinum, $1,623.00, Up $1.30.
• Palladium, $744.10, Down $6.40.

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