Closing Gold & Silver Market Report – 06/22/2011
TO QE3 OR NOT TO QE3, THAT IS THE QUESTION
Precious metals are still up this evening as Federal Reserve Chairman Ben Bernanke spoke about the economy. When Bernanke speaks the markets tend to move. This time the stocks were down and precious metals were up. Ironically, the dollar was up against the euro and yen, but this was because he put an end to rumors of the central bank expanding a stimulus package, restoring a little faith in the dollar. Unfortunately the Federal Reserve lowered their forecasts for employment and growth for this year and next despite their claim to the contrary in prior statements of predicted growth.
The Federal Reserve announced that they were going to leave the interest rates low for an “extended period of time,” which pushed gold up. They went on to say that things are not getting worse, but it is what they are not saying that speaks volumes. When the Fed uses the word “stable” in a time like this, it is both a blessing and a curse. It means we are not getting worse but we are not getting better either.
At 4PM (CT) the APMEX precious metal prices were:
- Gold price - $1,551.90 (up $5.00)
- Silver price - $36.51 (up 4 cents)
- Platinum price - $1,746.50 (down $1.70)
- Palladium price - $767.00 (up $2.30)