Is the Fed prepared to launch another round of monetary easing?
*Reuters, by Michelle Martin & William Hardy, March 26, 2012
”Gold prices rose 1 percent on Monday after comments from U.S. Federal Reserve Chairman Ben Bernanke that faster growth will be needed to boost employment supported expectations that further quantitative easing measures may be necessary.
Spot gold was up 1.1 percent at $1,680.06 at 1411 GMT. It earlier hit a two-week high of $1,683.79 after Federal Reserve Chairman Ben Bernanke said the U.S. economy needed to grow more quickly if it is to produce enough jobs to bring down the unemployment rate.
‘I think it (rose) on the back of Bernanke’s comments, which people have taken to mean that further funding might be required,’ Simon Weeks, head of precious metals at Scotia Mocatta, said. ‘I think people have taken that to mean that gold is still going to be in demand.’
U.S. gold futures for April delivery were up $19.00 an ounce at $1,681.40.
The euro hit its highest against the dollar in three weeks and the U.S. unit slid to a three-week low against the Swiss franc on Monday after Bernanke’s comments.”
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.