Ben Bernanke and buying gold in Canada
After a three week spiral south, the precious metals are stemming, at least temporarily, the recent downward pressure. Gold was able to catch bids yesterday at the psychological level of $1,700. It closed right above this level and the Asian market took it higher as value physical buyers came in to lift the market. Silver was buoyed by gold’s ascent as well and is being capped so far today at the 7 day moving average of $32.25. Decent short term support for silver should come in at the double bottom from yesterday and the day before at $31.50.
Yesterday, Federal Chairman Ben Bernanke’s testimony was not particularly noteworthy. Of mild interest for gold was his commentary that inflation has picked up somewhat. The US economy has been growing moderately and the Fed did not make any changes to its third round of asset purchases of $40 billion a month. During the Asian session, Japanese stocks moved up on the back of a weaker yen and expectations of additional support for asset prices from the Bank of Japan. The contagion from higher bourses in Asia has caught on in Europe and as of now, it looks like US equities will open positively as well.
