Mid-Day Gold & Silver Market Report – 7/13/2011
BERNANKE IMPLIES QE3 LIKELY
Fed Chairman, Ben Bernanke, had a congressional hearing today and spoke about a number of different topics. The biggest component to his testimony, was the implication that QE3 is likely to occur. He said, "The possibility remains that the recent economic weakness may prove more persistent than expected and that deflationary risks might reemerge, implying a need for additional policy support." The economy is expected to grow “at a moderate pace,” but unemployment is expected to decline only gradually. The weakness economically is causing the Fed to keep “all the options on the table.” He also feels failing to raise the debt ceiling would create a “huge financial calamity.” He compared not increasing the debt limit to “having a spending spree on your credit card and then refusing to pay the bill.” These remarks and concerns are really driving the stock market and precious metals’ prices.
The remarks during today’s conference, coupled with the on-going international debt crisis, have gold on the rise. According to Michael Widmer, an analyst at Bank of America Merrill Lynch, "Gold will keep rising for the next five years, even if it has some crests and troughs…Those holding gold should hold onto it, while others should probably get their hands on it as it is going to be on an upward trend. The sovereign debt crisis is helping the gold prices rise, but even if it is addressed in the short-term, the developed countries are in so much debt that it will continue to drive gold up for the next 10 years." Gold has officially hit its all-time high!
At 12:20 PM (CT) the APMEX precious metal prices were:
- Gold price - $1,587.10 - Up $23.80 on the day
- Silver price - $38.20 – Up $2.51
- Platinum price - $1,764.20 – Up $27.90
- Palladium price - $785.00 – Up $15.60