Closing Gold & Silver Market Report – 4/27/2011

BERNANKE SPEAKS PRECIOUS METALS SOAR – The much anticipated Fed announcement came out today and they are continuing with their stimulus policy because they feel the economic growth is slowing and inflation is not a concern right now. The Fed 2011 economic growth estimate was cut from 3.4% – 3.9% to 3.1% – 3.3%. "The markdown of growth in 2011, in particular, reflects the somewhat slower than anticipated pace of growth in the first quarter," Bernanke said in prepared remarks before he took reporter questions. This announcement is expected to put even more downward pressure on an already falling US dollar.

There are mixed opinions as to whether the Fed shut the door on a possible QE3 or left it slightly ajar. The statement that gives a clue to yet a third round of quantitative easing is that his group will “regularly review the size and composition of its securities holdings in light of incoming information and is prepared to adjust those holdings as needed to best foster maximum employment and price stability.” From this writer’s perspective, they certainly appear to have left themselves some wiggle room.

Long-term bond prices fell after Mr. Bernanke’s speech…the US Dollar fell to an August 2008 low… gold and precious metals go up.

At 4PM (CT) the APMEX precious metal prices were:

• Gold price - $1,528.50 (up $24.00)
• Silver price -$47.85 (up $2.72)
• Platinum price - $1,828.20 (up $23.80)
• Palladium price - $767.60 (up $10.80)