Gold prices rose in Monday trading after Ben Bernanke told 60 Minutes on Sunday the Fed may inject more stimulus into the economy, fanning the flames of currency devaluation fears.
Gold futures surged to a record $1420.40 an ounce on the COMEX at the New York Mercantile Exchange as of 3:18 EST, a jump of more than $14 per ounce since its previous close.
Investors couldn’t resist the shiny metal as prices have repeatedly broken records as they keep climbing higher and higher, fueled by the nation’s shaky economic state.
Monday’s newest record gold prices were credited to Fed Chairman Ben Bernanke’s statement on Sunday night’s 60 Minutes on CBS that unemployment would remain at high rates for potentially five more years, and that the Federal Reserve’s purchasing of additional Treasury securities was “certainly possible.”
Gold prices have traditionally served as an alternative to the shaky dollar, especially during the recession, and have provide investors a security against a greenback devaluation.
“Further currency debasement is the new norm,” said Matthew Zeman, a metal trader at LaSalle Futures Group, told Bloomberg News. “As long as that stands, investors are going to buy metals as a hedge against paper money. Gold has clear sailing to go much further from here.”
Remarks by Bernanke have been “largely bullish for precious metals,” Walter de Wet, analyst at London’s Standard Bank, told the International Business Times, stating that a Fed asset purchase due to a slow recovery would be a boon to metal futures.
“More liquidity means a further boost for precious metals, especially gold, as well as a weaker dollar,” he said.
Gold futures surged to a record $1420.40 an ounce on the COMEX at the New York Mercantile Exchange as of 3:18 EST, a jump of more than $14 per ounce since its previous close.
Investors couldn’t resist the shiny metal as prices have repeatedly broken records as they keep climbing higher and higher, fueled by the nation’s shaky economic state.
Monday’s newest record gold prices were credited to Fed Chairman Ben Bernanke’s statement on Sunday night’s 60 Minutes on CBS that unemployment would remain at high rates for potentially five more years, and that the Federal Reserve’s purchasing of additional Treasury securities was “certainly possible.”
Gold prices have traditionally served as an alternative to the shaky dollar, especially during the recession, and have provide investors a security against a greenback devaluation.
“Further currency debasement is the new norm,” said Matthew Zeman, a metal trader at LaSalle Futures Group, told Bloomberg News. “As long as that stands, investors are going to buy metals as a hedge against paper money. Gold has clear sailing to go much further from here.”
Remarks by Bernanke have been “largely bullish for precious metals,” Walter de Wet, analyst at London’s Standard Bank, told the International Business Times, stating that a Fed asset purchase due to a slow recovery would be a boon to metal futures.
“More liquidity means a further boost for precious metals, especially gold, as well as a weaker dollar,” he said.
