Gold and silver have started the day on Thursday up a bit after Wednesday saw the metals take a bit of a dive thanks to a higher US Dollar Index. While Federal Reserve Chairman Ben Bernanke spoke in front of the House oof Representatives regarding the US economy and monetary policy yesterday, his tour continues as he is set to speak in front of the Senate on Thursday. In all likelihood his remarks will remain the same from day to day, though investors and market watchers will be paying close attention to anything and everything he has to say.
Investors have also been keeping their eyes on Egypt as the civil unrest in that nation is far from over. Even though the interim government has already been sworn in, Pro-Morsi supporters are still taking to the streets in protest. We have yet to see any large-scale violence break out, though this could happen at any point in time.
Bernanke to Speak Again
Ben Bernanke’s prepared text for his speech to the US House of Representatives was released early yesterday morning, and what it had to say improved the outlook and spot values of precious metals. It was looking to be a good day for gold and silver until his Q&A session, which took place after his speech, caused spot values to come crashing right back down.
Bernanke’s speech made it clear that the Fed has no set timetable for when and how they are going to do away with Quantitative Easing. Bernanke actually said that monetary policies in the US will remain accommodating as long as he and the rest of the Fed think it is beneficial. Even though most people still believe that QE is definitely going to be done away with by the end of 2013, Bernanke’s remarks were slightly to the contrary. He said that if the US’ economic situation begins to break down and/or slow down, the Fed has no qualms with the thought of boosting Quantitative Easing as they deem necessary. This particular remark may have some long-term positive impact for gold and silver.
It is expected that Bernanke’s remarks on Thursday will echo what he said on Wednesday, though investors and market watchers will be paying close attention nonetheless. In the early morning hours of Thursday gold and silver were on the rise, but just like yesterday these gains stand the possibility of being relinquished as fast as they were realized.
Other World News
Due to Bernanke’s remarks on Wednesday, Asian stocks improved significantly on Thursday. Because most Asian markets were closed before they could digest what the Fed Chairman had to say, his comments had no impact on stocks until the following day. European stocks showed mixed numbers after Bernanke’s speech.
There is some light economic data due out of the US on Thursday, though none of it is expected to have any real bearing on the spot values of gold and/or silver. Spot values for both metals have been and still are quite subdued, which means that now is the best time to buy the metals. Despite low spot values recently bargain hunters have not been buying up gold and silver like many have expected t hem to, though this paradigm seems to be shifting for the better.