Completed the gold prices to rise this morning as investors awaited the day certificate Bernanke that will be provided for semi-annual report to the House of Representatives, and many believe that the Fed will point to the possibility to approve a third round of quantitative easing in the coming period to support the pace of economic growth slowing in the world’s largest economy, and this is what will support the demand for gold as a hedge.
Rising gold prices with speculative investors since yesterday that the governor of the Fed Ben Bernanke will allude to the possibility of the adoption of a third round of plans for quantitative easing stimulus to the economy, in order to support the growth of the U.S. economy, which has become very clear that the lost momentum to continue recovery at the same pace the previous.
That the decline in retail sales U.S. yesterday pace worse than expected given the gold strength to rise, it has confirmed the data on the weak U.S. economy, and this adds more signals on the economy need to ease monetary policy, the lower U.S. retail sales during last month’s pace great, and this reflects decline in consumer spending, which emphasizes the poor performance of the U.S. labor market and especially the U.S. economy in general.
Weakness of the U.S. dollar since afternoon trade gave the gold strength to rise and to reduce losses, and today we have a date with inflation data from the U.S. economy over the past month, which is estimated to remain around 1.7% ie close to the target levels for the Bank of federal and this is what gives the bank the light Green to approve a third round of quantitative easing.
Gold prices fell immediate Pettmam time 08:32 GMT by 0.22% to record levels of trading $ 1,593.21 per ounce and recorded a high of $ 1,595.98 and a low of $ 1,587.97 compared to 1,589.20 at the opening price of $.
Silver prices currently trading around the levels of $ 27.41 per ounce compared to opening price at $ 27.27 and recorded a low of $ 27.20 and a high of $ 27.50.
Capital investors to buy gold as a safe amid worsening sovereign debt crisis, especially after the reduction of the International Monetary Fund, yesterday, its forecast for global growth, and warned of further cuts if you did not move policy makers in Europe with enough power and speed, to stem the debt crisis of the euro area.
In the semi-annual performance review of the economy, the IMF warned, also, that the production capacity in emerging markets such as China, India and Brazil, may be less than previously thought, and said that future growth may be disappointing.