Stock Market Watch

Gold Prices Rally After Bernanke’s Remarks, Silver Prices Climb Almost 4%

by · Published · Updated


Gold prices jumped during Asian trading hours on Thursday after the Silver prices also rose sharply in early trading on Thursday.

Gold futures for August delivery leaped 2.77% to $1,281.90 an ounce while spot gold gained 1.71% to $1,285.30 an ounce.

Addressing a group of senior economists in an event held at the National Bureau of Economic Research on Wednesday, Bernanke said that the labor market still wasn’t strong enough; as a result the multi-billion dollar bond purchase program would stay on.

Before Bernanke’s remarks, speculation was rife that the Fed would could start winding down its asset purchases by September.

Separately, the minutes from the Fed’s latest open market committee meeting (FOMC) also showed that policymakers were divided over when the bank should start winding down its economic stimulating measures.

Quantitative easing, which entails excessive currency printing to buy government bonds, augurs well for the precious metal as it stokes inflationary concerns.

“Bernanke was quite dovish in his comments. Maybe we won’t see a pullback in quantitative easing as quickly as we anticipated,” said Amber MacKinnon, an analyst at Nomura Securities in Sydney while speaking to Reuters.

“We are likely to see a short-term rally in gold up to around $1,400 and then a fall back to current levels,” added Mackinnon.

Silver futures jumped 3.84% to $19.90 an ounce.

In pre-market trading, the iShares Silver Trust (ETF) (NYSE: SLV) was up 3.84%, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was up 7.55%.

 








More Posts by this author

edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

Tags:

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

You may also like...