INFLATION

The chances of the U.S. economy averting a new recession got a boost on Thursday with claims for jobless benefits falling to a five-month low last week and growth a touch stronger in the second quarter than previously estimated.

Gold prices tanked 11 percent so far in September, shaking the confidence of some investors and spectators. “Gold is not a safe-haven asset” and “gold is no longer a one-way bet” are common exclaims.

A weakening of the Canadian dollar helped pushed up the Canadian producer price index in August by 0.5 percent, Statistics Canada said on Thursday.

Gold prices hovered in a tight range Thursday as bullish and bearish forces pinned the yellow metal to a virtual standstill.

Stocks rose on Thursday on stronger-than-expected economic data and German lawmakers' approval of new powers for the euro zone's crisis fund.

Two economic reports released Thursday may give encouragement to the U.S. stock market's bull, or those who calculate the market is headed higher -- initial jobless claims plunged 37,000 to 391,000 last week and U.S. GDP in second quarter was revised slightly higher, to 1.3 percent from 1.0 percent.

Federal Reserve Chairman Ben Bernanke said on Wednesday the central bank might need to ease monetary policy further if inflation or inflation expectations fall significantly.

The Federal Reserve's move last week to further lower borrowing costs was risky and won't significantly speed up a painfully protracted recovery, one of the officials who dissented against the decision said on Thursday.

Stock index futures rose on Thursday after Germany approved new powers for the euro zone's crisis fund and before the government releases data on U.S. economic growth and the labor market.

The euro rose against the dollar on Thursday as the German parliament approved the euro zone rescue fund's new powers, though Skepticism over the lack of a comprehensive plan to deal with the region's debt crisis was seen to be checking gains.

Stock index futures rose on Thursday after a German vote approving new powers for the euro zone's crisis fund was approved and before data on U.S. economic growth and the labor market.

A string of Chinese entrepreneurs have gone into hiding to avoid repaying loans, according to state media reports, highlighting a credit squeeze on private firms and the dangers of steep interest rates in China's vast and growing informal lending market.

Global energy prices that have remained steadily high restrict the elbow room for monetary policy response, deputy governor of the Reserve Bank of India said, highlighting the uphill task the bank faces in its fight against stubbornly high inflation.

Federal Reserve Chairman Ben Bernanke said on Wednesday the central bank might need to ease monetary policy further if inflation or inflation expectations fall significantly.

The Federal Reserve's new Operation Twist drew a number of objections from Richard W. Fisher, president of the Federal Reserve Bank of Dallas, who explained his opposition to the move in a speech Tuesday.

Spot gold fell 5.2 percent and silver dropped by the most in three years, extending Friday's rout as investors bolted for the ultimate safe havens of cash and the dollar.

China's economic outlook is positive, but it must keep battling inflation and be ready to counteract any external shocks, the country's top central banker said on Saturday.

China's economic outlook is positive, but it must keep battling inflation and be ready to counteract any external shocks, the country's top central banker said on Saturday.

Due to the lingering government debt crisis in Europe and a 9.1 percent U.S. unemployment rate, key economic statistics are pointing to slow-growth conditions in the U.S. for the next two quarters, and a double-dip recession is possible. Is there anything Congress can do to create jobs and get the U.S. economy moving again?

Gold is not a safe-haven asset, contrary to what some gold bugs believe. Perhaps the clearest recent evidence of is its huge declines since early September in response to the European debt crisis and the struggling U.S. economy.

South Africa's Reserve Bank left its repo rate unchanged on Thursday and struck a dovish note as it balanced its concerns for domestic economic growth with an expected increase in inflation stemming from a sharply weaker rand.