Mid-Day Gold & Silver Market Report – 7/16/2013
DOLLAR EDGES LOWER; GOLD UP AHEAD OF BERNANKE TESTIMONY
The U.S. dollar sank today versus competing world currencies as investors expect little deviation in U.S. Federal Reserve Chairman Ben Bernanke’s Congressional testimony concerning the future of quantitative easing (QE). Bernanke is scheduled to deliver a two-day testimony beginning Wednesday and many experts predict a reiteration of comments made last week assuring the perpetuation of QE in the immediate future. Gold is reacting somewhat favorably to the weaker dollar as traders and investors alike look to Wednesday for significant comments that could influence price movement in stock and Precious Metals markets.
As Gold continues to rise with another day of moderate gains, many wonder how high the metal can climb. Gold’s short-term future depends primarily on the Fed’s intentions for the future of monetary easing. Comments made last week by Bernanke helped elevate Gold 5 percent, but remarks from previous Fed meetings indicated a potential tapering of QE that could commence before next year. "Bernanke is sending confused messages and I think the guessing will continue, and he's likely to keep his words cloudy and unclear," Societe Generale analyst Robin Bhar said. For now, investors are seeking asylum in Gold and Silver as they pursue a hedge against the potential dollar devaluation expected to result from continued loose monetary policy.
At 1 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,293.50, Up $7.00.
- Silver, $20.03, Up $0.10.
- Platinum, $1,425.20, Up $3.80.
- Palladium, $736.80, Up $3.60.
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