Gold Recaptures $1,600 as Bernanke Defends QE Programs

  • Rate this Story
  • 0
  • 0

By Eric McWhinnie | February 27, 2013 7:15 AM EST

Wall St. Cheat Sheet

On Tuesday, gold (NYSEARCA:GLD) futures for April delivery, the most active contract, jumped $28.90 to settle at $1,615.50 per ounce, while silver (NYSEARCA:SLV) futures for March gained 27 cents to close at $29.26. It was gold’s best one-day performance of the year.

Both precious metals received support as Federal Reserve Chairman Ben Bernanke delivered the Semiannual Monetary Policy Report to Congress. The central bank signaled it will continue its massive bond-buying programs, as the benefits outweigh the risks. Bernanke also agreed with the stimulus actions being taken in Japan in order to fight deflation, and does not see an equity bubble forming in the United States.

He also said the Fed takes the potential risks that its policies promote excessive risk-taking “very seriously.” Bernanke adds, “To this point we 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 and more-rapid job creation.”

In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) and iShares Silver Trust (NYSEARCA:SLV) both increased more than 1 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Goldcorp (NYSE:GG) jumped 1.6 percent and 2.5 percent, respectively. Silver names such as Endeavour Silver (NYSE:EXK) and Silver Wheaton (NYSE:SLW) edged 0.30 percent and 0.85 percent, respectively.

Don’t Miss: How Strong is Gold Demand?

If you would like to receive professional analysis on miners and other precious metal investments, we invite you to try our premium service free for 14 days.

Disclosure: Long EXK, AG, HL, PHYS

  • Rate this Story
  • 0
  • 0
The article was first published by Wall St. Cheat Sheet and does not represent the views or opinions of International Business Times.

Join the Conversation

IBTimes TV

We value your privacy. Your email address will not be shared.