GOLD IS RISING AS THE DOLLAR IS SINKING- Yesterday’s Fed decision to stay the course has put added pressure on the US dollar. Chairman Bernanke stated that he considers inflationary pressures transitory and the lower than expected first quarter economic growth, transitory. He even might have left the door open for another round of monetary easing, once QE2 has expired. Gold and silver prices immediately shot up as a bet against the wisdom of the Fed policy. The stock market went up capitalizing on continued easy money.
The unprecedented spring tornado outbreak continued yesterday, as multiple tornadoes struck in Alabama. The current death toll is at 176. It is not only economic and geopolitical uncertainties that can drive people to safe haven investments such as gold, the uncertainty of natural disasters can as well.
Stock futures are now falling, as the weekly jobless claims report fell more than expected. We lost 25,000 jobs. Economists surveyed by Reuters had expected claims to fall to 392,000, but they rose to 429,000.
At 8AM (CT) the APMEX precious metal prices were:
- Gold price - $1,532.80 (up $14.70)
- Silver price - $48.51 (up $2.47)
- Platinum price - $1,835.60 (up $17.40)
- Palladium price - $775.50 (up $16.40)