Ben Bernanke, the US Federal Reserve Chairman, outlined the steps that the central bank can take to manage its rampant money printing exercise and curb inflation once the economy starts to recover. The dollar rallied on the news and gold slipped to $946/oz. However, the long term future for gold is still very bullish as there is still huge uncertainty regarding the value of paper currencies in light of various countries’ monetary and fiscal policies. The almost certain swine flu pandemic looks set to exacerbate an already difficult situation for governments internationally. Technically a close above $943/oz could signal $960/oz as the next benchmark. If this is reached, look to $990/oz.
Silver also dipped slightly in overnight trading and is currently at $13.47. Indicators would suggest that if silver holds above $13.35/oz then a move to challenge the $14/oz mark is possible.
Platinum group metals
Platinum is down $2 to $1,168/oz and palladium is holding steady at $252/oz. Rhodium held on to its gains of yesterday and is trading at $1,350/oz/$1,450/oz.