Morning Gold & Silver Market Report – 5/22/2013
FED CHAIRMAN BERNANKE SPEAKS TODAY
Precious Metals are trading higher this morning after comments made by two U.S. Federal Reserve officials yesterday. Both New York Fed President William Dudley and St. Louis Fed President James Bullard supported the continuance of the Fed’s quantitative easing (QE) program until more economic progress is made. Gold has been trading against the U.S. dollar recently, as Societe Generale analyst Robin Bhar explains, “The correlation of the dollar with Gold has been quite strong lately and today's weakness in the U.S. currency after Fed officials said it may be too early to be pulling back of QE certainly helps the metal.”
Federal Reserve Chairman Ben Bernanke will provide testimony to Congress’ Joint Economic Committee at 10 a.m. (EDT). Investors are mainly looking for clues to the Fed’s potential exit plan from the QE program. Craig Erlam of Alpari U.K. said, “The S&P and Dow hit new record highs again on Tuesday following comments from [Federal Open Market Committee] members James Bullard and William Dudley that suggested we will see no monetary tightening in the near future. If Bernanke makes similar comments today, I see no reason why we won’t see more record highs (for stocks) on Wednesday.”
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,395.60, Up $15.00.
- Silver, $22.91, Up $0.35.
- Platinum, $1,476.00, Up $16.10.
- Palladium, $752.30, Up $2.10.
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