Bernanke Decisions affected the Gold, Oil and Silver
After US Federal
Reserve chairman Ben Bernanke said stimulus measures might be reduced this year
as the US economy recovers, gold prices dropped by 3.4 % to reach $ 1304.75 per
ounce which is the lowest level since September 2010. Market expectations are
for the price to fall below US$1,300 an ounce this month,
Chairman Ben Bernanke said this week that the central bank, which buys $85 billion a month of Treasury and mortgage debt, may begin reducing purchases this year and he will end the program in 2014 should the economy continue to improve.
Bernanke decisions affected negatively the movements of precious metals, especially the Gold , which witnessed a sharp decline due to the rebound of US dollar.
The price of gold bullion for August delivery contracts decreased by a large margin of 5.1% to $ 1303.30 an ounce at the Comex in New York Stock Exchange and then continued to fall below the level of 1300 to reach $ 1,290.
Gold has entered the downward trend period Since April with the loss of some investors' confidence in the yellow metal amid decreasing inflation and rising of global stocks .
Silver prices also fell by a large margin of 6.2% to reach $ 20.084 an ounce, the lowest level since 14th of September 2010
With Brent lost $ 3 once the dollar rose and global asset markets witnessed a big correction after the Federal Reserve said "the U.S. central bank" would begin reducing the frequency of stimulus this year with improved prospects for the economy.
And with optimism of the Fed concerning the US economy, and the decline of the unemployment rate to around 7 % from the current level of 7.6 %. This has pushed the dollar index high, which supports the performance of the greenback against a basket of major currencies, with a value of 0.6 %t to 81.890, which is the highest level since the 10th of June. Bernanke comments also pushed prices of U.S. stocks and bonds to slip sharply.
Chairman Ben Bernanke said this week that the central bank, which buys $85 billion a month of Treasury and mortgage debt, may begin reducing purchases this year and he will end the program in 2014 should the economy continue to improve.
Bernanke decisions affected negatively the movements of precious metals, especially the Gold , which witnessed a sharp decline due to the rebound of US dollar.
The price of gold bullion for August delivery contracts decreased by a large margin of 5.1% to $ 1303.30 an ounce at the Comex in New York Stock Exchange and then continued to fall below the level of 1300 to reach $ 1,290.
Gold has entered the downward trend period Since April with the loss of some investors' confidence in the yellow metal amid decreasing inflation and rising of global stocks .
Silver prices also fell by a large margin of 6.2% to reach $ 20.084 an ounce, the lowest level since 14th of September 2010
With Brent lost $ 3 once the dollar rose and global asset markets witnessed a big correction after the Federal Reserve said "the U.S. central bank" would begin reducing the frequency of stimulus this year with improved prospects for the economy.
And with optimism of the Fed concerning the US economy, and the decline of the unemployment rate to around 7 % from the current level of 7.6 %. This has pushed the dollar index high, which supports the performance of the greenback against a basket of major currencies, with a value of 0.6 %t to 81.890, which is the highest level since the 10th of June. Bernanke comments also pushed prices of U.S. stocks and bonds to slip sharply.
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