Precious metals close higher
“The mere mention of the fact that ultra-low interest rates are helpful to an economy that is trying to grow” was enough to push gold prices higher, said Jon Nadler, an analyst with Kitco Metals, in a note.
“Precious metals players remain desperately fixated on any promise of a QE3 by the Fed, or even the hint of one,” he said, referring to a potential third round of Fed bond buying, or quantitative easing.
The US dollar pulled back after the release of Bernanke’s prepared remarks, and gold gained $US15 an ounce in the span of about 15 minutes. A weaker dollar can boost dollar-denominated gold by making the futures appear cheaper for buyers using other currencies.
“Precious metals players remain desperately fixated on any promise of a QE3 by the Fed, or even the hint of one,” he said, referring to a potential third round of Fed bond buying, or quantitative easing.
The US dollar pulled back after the release of Bernanke’s prepared remarks, and gold gained $US15 an ounce in the span of about 15 minutes. A weaker dollar can boost dollar-denominated gold by making the futures appear cheaper for buyers using other currencies.
