Mid-Day Gold & Silver Market Report – 7/17/2013
BERNANKE AFFIRMS FISCAL POLICY TAPERING
U.S. Federal Reserve Chairman Ben Bernanke began his semiannual monetary report before Congress today, where he confirmed that, if the U.S. job market continues to strengthen and inflation moves closer to the targeted range of 2 percent, the bond buying program would be moderated later this year. He added that that could change depending on incoming economic data. During the Q&A portion of the testimony, Bernanke shared his thoughts on why it was best to inform the market of the Fed’s plans. He believes that if the plans were not shared, it could have created an uncertain financial market with investors possibly taking extremely risky positions. “Markets are beginning to understand our message and the volatility has obviously moderated," Bernanke said.
Gold fell as the U.S. dollar strengthened ahead of the Q&A portion of the testimony. “Bernanke's testimony is bullish for Gold as he has tapered market expectations of an early tapering,” New Delhi-based independent bullion analyst Chintan Karnani said. The market had anticipated that the fiscal policy cutback may not occur as quickly as Bernanke stated during June’s policy meeting and today’s confirmation set Gold back.
At 2:52 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,278.40, Down $15.00.
- Silver, $19.39, Down $0.63.
- Platinum, $1,408.60, Down $16.50.
- Palladium, $734.50, Down $2.10.
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