Mid-Day Gold & Silver Market Report – 7/18/2013
BERNANKE TESTIFIES; GOLD REBOUNDS
In his second day of testimony, U.S. Federal Reserve Chairman Ben Bernanke has emphasized that monetary policy will not be tougher for the foreseeable future, explaining, "We have not changed policy. We are not tightening policy." Although talks of winding down its bond purchases has hinted at a tighter future policy, he reiterated that none of what the Fed has communicated implies that will happen anytime soon. Bernanke said that with inflation still not at its target and unemployment higher than they want to see, the Fed intends to maintain the current quantitative easing (QE) policy. The result of the Fed’s accommodative policy has been a stock market rally and more borrowing and spending.
The Gold price has continued to gain on the heels of Bernanke’s comments. The QE programs have been bullish for the Precious Metal and the potential for tapering caused an early dip in prices. Credit Suisse analyst Karim Cherif said, “Tapering is here and we will be living in a different world at some stage ... but even if we start seeing less easing that doesn't necessarily mean that we'll see an higher interest rates environment. On the contrary, low interest rates will probably continue and that's also why there is a base to how much Gold could drop."
At 1:02 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,287.70, Up $7.20.
- Silver, $19.53, Up $0.02.
- Platinum, $1,414.50, Up $3.50.
- Palladium, $748.30, Up $11.80.
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