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Wednesday, May 22, 2013

Chairman Bernanke takes center stage at 10:00 AM as market participants look for clues

Good Morning,
 
Chairman Bernanke takes center stage at 10:00 AM as market participants look for clues as to the future of Quantitative Easing. The Feds $85 billion-a-month spending spree has helped push equities markets to never-before-seen levels and speculation over whether the insanity will continue has plagued the markets in recent weeks. The volatility of late is testament to investor uncertainty but comments from FOMC members yesterday seems to have many leaning towards Bernanke signaling a continuation of what one of the members called “the best monetary policy option”. Gold closed Tuesday’s session at $1377.60 but made yet another run at the psychological level of $1400 in overnight markets, reaching $1397.10 before halving the move to its current level of $1383. The yellow metal is still up .38% to start the day. The PGMs continue to find support from the anxiousness surrounding the mining industry in South Africa as wage negations are just around the corner. Platinum and palladium find themselves in positive territory to start the day. Platinum closed yesterday’s session at $1458 while palladium ended the day at $748. Barring any “fat fingers” the Fed minutes from the last gathering will be released at 2:00 PM EST. Existing home sales will come out at 10:00 AM but are likely to be overshadowed by Mr. Bernanke’s comments.

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