Tuesday, March 27, 2012
CapitalAccount on Mar 26, 2012
Gold and Silver gaped higher at the New York opening overnight and have maintained their gains during trade in Sydney and Hong Kong. With Gold again flirting with the $1700 level and Silver $33. The reason cited is that Ben opened his bagel hole again, unlike two weeks ago when he said something and the Gold price fell $40, today the Gold price spiked $30 - go figure.
In summary BS Bernanke said at the Business Economics Annual Conference in Washington, DC that further QE is likely, well maybe, if you ask really nicely:
"A wide range of indicators suggests that the job market has been improving, which is a welcome development indeed. Still, conditions remain far from normal, as shown, for example, by the high level of long-term unemployment and the fact that jobs and hours worked remain well below pre-crisis peaks, even without adjusting for growth in the labor force. Moreover, we cannot yet be sure that the recent pace of improvement in the labor market will be sustained. Notably, an examination of recent deviations from Okun's law suggests that the recent decline in the unemployment rate may reflect, at least in part, a reversal of the unusually large layoffs that occurred during late 2008 and over 2009. To the extent that this reversal has been completed, further significant improvements in the unemployment rate will likely require a more-rapid expansion of production and demand from consumers and businesses, a process that can be supported by continued accommodative policies"
|charts from goldprice.org|