Gong from big Ben takes a toll on Gold: Who will support prices now?

Discussion in 'General E-commerce' started by harreymartin, Jul 18, 2013.

  1. harreymartin

    harreymartin New Member

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    When big Ben tolled the markets initially took it for a positive gong and gold futures began to climb. Then, as an afterthought, as the markets began to read between the lines, the futures of gold began to dip, it dipped as much as 1.3% at one point in time.

    Yes, Ben Bernanke did it again!

    As the Chairman of the US Federal Reserve, Ben Bernanke wields huge powers when it comes to influencing the strength of the US Dollar and thereby the world of commodities.

    Bernanke on Wednesday testified before the US Congress and said the Federal Reserve still expects scaling back of QE measures later in 2013; however has the option of changing plans should the economy changes track, the outlook gets shifted.

    "Our asset purchases depend on economic and financial developments, but they are by no means on a preset course," he told the U.S. House of Representatives Financial Services Committee in remarks prepared beforehand.

    “If the outlook for employment were to become relatively less favorable, if inflation did not appear to be moving back toward 2 percent, or if financial conditions -- which have tightened recently -- were judged to be insufficiently accommodative to allow us to attain our mandated objectives, the current pace of purchases could be maintained for longer.”

    When big Ben tolled the markets initially took it for a positive gong and gold futures began to climb.

    "Bernanke appeared to scale back some of the more aggressive comments regarding curtailment of QE and focused on additional monetary stimulus for the remainder of this year," Jonathan Butler, an analyst at Mitsubishi, said to CNBC as the testimony was read around the world. "If there's a reiteration of that, we might well see gold push a bit higher,”he added.
     

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