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.”
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