Most traders think that gold prices were sunk as a result of Bernanke testimony this morning and that might be difficult to argue against. Perhaps the initial claims readings dampened expectations for a fresh easing move or perhaps that is giving the influence of the claims data too much credence. However, it would not seem like many markets are being cheered by the Fed Chairman's testimony as the net result might be expectations that more softening in the US economy is needed before additional action is taken. Some players might have been discouraged by suggestions from the Fed that additional easing might do little to ease the Euro zone crisis and it might also not be overly effective in stimulating the economy. The gold market should have seen some support from currency market action this morning but early overt strength in the Euro was moderated as the trade unfolded this morning.
Join the Discussion