Silver, Gold Active as Bernanke Expresses Some Concerns (SLV) (GLD)
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iShares Silver Trust (NYSE: SLV) and SPDR Gold Shares (NYSE: GLD) ETFs are seeing some impressive volume as Fed chairman Ben Bernanke testified in front of a Congressional committee.
In part, Bernanke told the Joint Economic Committee that his concerns over financial stability "increased a bit." He also noted that the job market remained weak overall with unemployment "still well above its longer-run normal level."
On monetary policy, Bernanke noted, "A premature tightening of monetary policy could lead interest rates to rise temporarily but would also carry a substantial risk of slowing or ending the economic recovery and causing inflation to fall further. Such outcomes tend to be associated with extended periods of lower, not higher, interest rates, as well as poor returns on other assets. Moreover, renewed economic weakness would pose its own risks to financial stability."
Should quantitative easing measures come to an end in late 2013 or early 2014, gold and silver might see additional pressure on the stronger U.S. dollar, or which both are denominated.
Gold June contracts are down slightly to $1,377.0 per ounce on the Comex, while July silver contracts are up to $22.64 per ounce.
For the full Bernanke testimony, click here.
In part, Bernanke told the Joint Economic Committee that his concerns over financial stability "increased a bit." He also noted that the job market remained weak overall with unemployment "still well above its longer-run normal level."
On monetary policy, Bernanke noted, "A premature tightening of monetary policy could lead interest rates to rise temporarily but would also carry a substantial risk of slowing or ending the economic recovery and causing inflation to fall further. Such outcomes tend to be associated with extended periods of lower, not higher, interest rates, as well as poor returns on other assets. Moreover, renewed economic weakness would pose its own risks to financial stability."
Should quantitative easing measures come to an end in late 2013 or early 2014, gold and silver might see additional pressure on the stronger U.S. dollar, or which both are denominated.
Gold June contracts are down slightly to $1,377.0 per ounce on the Comex, while July silver contracts are up to $22.64 per ounce.
For the full Bernanke testimony, click here.
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