Good Morning,
The
precious complex is licking its wounds this morning following
yesterday’s sharp selloff amid uncertainty surrounding the future of
domestic monetary policy. The “maybe, maybe not” tone of Chairman
Bernanke’s testimony before the House
Financial Services Committee yesterday, coupled with weak housing data
and the Beige Book release, is enough to make a market participants head
spin. The Chairman reiterated his previous testimony that monetary
policy will remain highly accommodative for as
long as needed but that it will have to come to an end at some point.
The Fed Head will speak in front of the Senate at 10:00 am this morning
and investors will pay particular attention to the Q&A, just in case
any new information is brought to light.. As
for economic data, weekly jobless claims fell to 334,000 beating
estimates of a drop to 348,000 but whatever that may mean for the health
of U.S. employment will be qualified when the next NFP numbers are
released in just a few weeks. Gold took a $30 hit
yesterday before recovering slightly by days end and closing at
$1277.50. The yellow metal continues to try and regain that lost ground
and now trades $1286. Silver also took a significant hit and continues
to trade near yesterday’s close of $19.42. Platinum
followed suit and closed at $1411 by days end while palladium seems to
bucked the trend by not only holding above the $730 mark but now trading
nearly 1.5% higher at $745. Have a great day!
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