Closing Gold & Silver Market Report, 7/18/2012
FED CHIEF SLAMS BILL; EURO FALLS, TAKING GOLD WITH IT
Precious Metals continue to respond to a falling euro and the conclusion of Federal Reserve Chairman Ben Bernanke’s testimony before Congress today. With no firm plan for quantitative easing established, a number of investors are scratching their heads but are hopeful for further Fed action. Metals analyst Edward Meir said, “While easing may be expected, investors are still saddled with the uncertainty of not knowing exactly when such an order will be given.”
Bernanke also took issue with a bill being passed through the House giving Congress the ability to review monetary policy decisions, a move that clearly would diminish the central bank’s independence. He called the proposal a nightmare scenario. He added that the bill “is very concerning because there’s a lot of evidence that an independent central bank that makes decisions based strictly on economic considerations and not based on political pressure will deliver lower inflation and better economic results in the longer term.”
U.S. stocks climbed for a second day in a row, along with treasuries and commodities. Chief investment strategist Mark Luschini said, “Earnings have been a mixed bag so far. But given the healthy state of corporate America with cash on the balance sheets and valuations undemanding, we can weather this environment in terms of share prices. … Looking at the markets, all I can see in them is the Bernanke bid.”
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,574.20, Down $16.80.
- Silver, $27.21 Down, $0.20.
- Platinum, $1,406.10, Down $14.60.
- Palladium, $575.80, Down $8.60.
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