Bernanke’s comments spur demand for safety, gold advance
Bernanke's statement yesterday spurred investors to take further precaution in their investments, accordingly, shifting demand for safe financial tools such as low yielding assets, gold and treasuries.
Throughout Bernanke's testimony, the Fed Chairman stated that the outlook for the economy remains uncertain, while keeping the door open for further stimulus that might be needed in the upcoming period in order to prevent the economy from crashing and witness a double dip recession.
Uncertainty in Europe and Bernanke's remarks forced stocks in Europe to follow the Asian market as both dropped in trading, while U.S. futures rose. UK and the Euro-Zone still face challenges ahead, where UK inflation rates threaten recovery and growth as speculations started to mount of a possible setback in the upcoming period that would send the British economy back into a recession.
Meanwhile, the 16-nation economy continue on fighting the war with debt as it continues to mount and suppress activities in the continent amid austerity measures adopted and fragile domestic demand. Investors await the results of Europe's Stress Test results that were conducted to examine the strength of the financial sector in the continent. The results will be published tomorrow Friday at 16:00 GMT.
The dollar fell against most of its counterparts, where the U.S. dollar index, a gauge of the dollar's performance against six currencies including the Euro, Pound and Yen, fell on the daily basis to trade at 83.02, compared with the opening levels of 83.19.
Gold typically moves in an inverse relationship with the Dollar, Gold trading is shifting between profit takers and safe investment seekers, causing volatility in trading throughout the past period. Nonetheless, so far, uncertainty from the global outlook led investors to target the precious metal where gold for immediate delivery inched higher where today's opening levels were set at $1185.10 an ounce, while currently the yellow metal is trading at $1185.83 an ounce, where it reached the highest at $1186.72 an ounce, and the lowest at $1181.00 an ounce.
As for other metals, Silver traded higher where it's currently trading at $17.68 where it reached a high of $17.77 and a low of $17.54, meanwhile Platinum, which is the world's most expensive metal, dropped so far in today's trading by $2.0 or reaching $1509.0 an ounce. Meanwhile, Palladium inclined where the metal traded at the opening levels of $444.00.
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