In the same category

Gold price surge as Bernanke’s doves fly again

IMG Auteur
Published : February 27th, 2013
370 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
Our Newsletter...
Category : Market Analysis

24hGold - Gold price surge as ...Markets have been roiled over the last 48 hours by the three B’s: Berlusconi, Bernanke and Boehner. The indecisive Italian election outcome and the strength of the anti-austerity vote has many traders thinking that the whole eurozone issue is not receding in the rear-view mirror quite as quickly as some had hoped. EURUSD fell by more than two cents on Monday afternoon as news from Italy was digested. Stock markets also fell sharply, along with industrial commodities. In contrast, gold held onto its early-day gains.

Ben Bernanke therefore had an important task to do in his Congressional testimony yesterday: reassuring markets that, contrary to the head fake in the last batch of FOMC minutes, easy money policies will last for a long time to come yet.

He didn’t disappoint – noting “we [the FOMC] do not see the potential costs of the increased risk-taking in some financial markets as outweighing the benefits of promoting a stronger economic recovery… Inflation is currently subdued, and inflation expectations appear well anchored.” The money printing will continue he said until “substantial improvement” was seen in the labour market.

Gold and silver had their best day of the year in response to Bernanke’s comments, with gold gaining over $30 in a matter of minutes as the Fed chairman’s dovish words hit the airwaves; as ZeroHedge says, the yellow metal has had its best four-day trading run in six months. Silver gained around 80 cents, with a similarly impressive pop in copper. There’s been an air of unreality about the gold market in recent weeks, given the disconnect between the bullish fundamentals and the price action, but we could at last be seeing an end to this mismatch.

The final “B” is Boehner – that is John Boehner, current Speaker of the House of Representatives. Republicans and Democrats are still at loggerheads over the “sequester” budget cuts. Piddling cuts ($85bn this year) will take effect from Friday March 1 unless Congress and the president agree to kick the can down the road again. Chances are of course that they do the latter, but expect a bit more political grandstanding before then, though some DC insiders expect an agreement to be reached after the March 1 “deadline”.

Data and Statistics for these countries : Italy | All
Gold and Silver Prices for these countries : Italy | All
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Drums Along the Potomac
I see there's a HUGE market for Conspiracy Theories and FAKE NEWS in the U.K. ~ from the Top down. Theresa May runs her Conspiracy Theory up her f...
Stephen Hawking – Doomsday Prophet’s Top Five Predictions
19 MarThemis1
Stephen Hawking may have been brilliant in his own sphere of science. This does not necessarily equip him to make accurate pronouncements about ot...
Stephen Hawking – Doomsday Prophet’s Top Five Predictions
17 MarWatchdoctor3
In my opinion, yet another NASA actor promoting ''leaving the earth'' as a viable alternative to living in peace with our neighbours. Not even sure...
Drums Along the Potomac
18 MarThemis1
While I, too, don't give a hoot about the Skripals, the UK cannot tolerate foreign agents running amok and potentially endangering innocent British...
School Daze
15 MarJ.
@bfsiedel, While I agree with much of what you posted, regarding whether or not school is broken depends upon one's expectations of public school....
School Daze
12 Marbfsiegel1
The part that I find troubling in these conversations, regardless of perspective, is how much they revolve around the extremes. i.e. situations and...
School Daze
12 Marbfsiegel1
The part that I find troubling in these conversations, regardless of perspective, is how much they revolve around the extremes. i.e. situations and...
End Times at the OD Corral
08 Marprljr1
After all; ALL the POWERS ~ The Banksters, The Pentagon, Wall Street, The Israelis, The Oil Companies and the Quasi Rich ~ are getting EVERYTHING t...
Most commented articlesFavoritesMore...
World PM Newsflow