Precious Metals have rebounded from early session declines, as Federal Reserve Chairman Ben Bernanke’s testimony again did little to indicate when or what actions the Fed might take to simulate the economy. In short, he simply restated the Fed’s pledge to to act if needed. “The Gold market’s reaction is suggesting that we are not going to get any stimulus anytime soon until the economy deteriorates much further,” said Phillip Streible at futures brokerage R.J. O’Brien. “I think these markets are going to be in a trading range for a while,” he said.
Feedback from some in Congress to Bernanke’s testimony was that the Federal Reserve is the best hope for economic stimulus. “Given the political realities, particularly in this election year, I’m afraid the Fed’s the only game in town,” said Sen. Charles Schumer (D-NY). “I would urge you to take whatever actions you think would be most helpful in supporting a stronger economic recovery.”
The man who runs the world’s largest mutual fund feels the United States is indeed nearing a recession and expects the Federal Reserve to take more steps to help economic growth. The United States is “approaching recession when measured by employment, retail sales, investment, and corporate profits,” said Bill Gross, who manages the $263 billion Pimco Total Return Fund.
At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,589.90, Down $3.20.
- Silver, $27.38, Down $0.03.
- Platinum, $1,420.00, Up $2.70.
- Palladium, $585.10, Up $6.30.
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