Gold and silver are substantially calmer on Tuesday than they were only a day ago after both metals recorded very positive gains. From this point on this week is expected to be one of few economic stories, and the economic stories we do hear will likely have little to no impact on the spot values of gold and silver. Though it took almost a week for it to happen, the world marketplace has digested the remarks made to the US Congress by Ben Bernanke last week.
It seems that metals have had a bit of a corrective pullback from Monday's gains, though it is reasonable to say a pullback is what should have been expected after a day of such solid gains.
Bernanke's Last Week Remarks
At this point a week ago investors of all types had their eyes and ears prepared for Federal Reserve Chairman Ben Bernanke's remarks to both the House of Representatives and the US Senate. Since his main speaking points were in regards to the US economy and monetary policy, it is only sensible that precious metals investors would pay attention to what Bernanke had to say.
First up was the House on Wednesday where the things Mr. Bernanke had to say came as a bit of a shock to many people. His prepared text was released early Wednesday morning which gave investors time to read about what he was going to say before his press conference actually got underway. His remarks were shocking in that he mentioned that Quantitative Easing is not on some preset course to being done away with. Though many market watchers have speculated, up to this point, that QE will be "wound down" or dismissed completely by the end of the 2013 calendar year. Bernanke even went as far as to say that QE might even be boosted if the US economy were to take a turn for the worse anytime soon.
On Thursday Bernanke spoke in front of the Senate though what he had to say was more or less the same from day to day. In the immediate aftermath of Bernanke's remarks gold and silver spot values did not do much moving, though by the time Monday morning rolled around the marketplace had digested the news and saw what the Chairman had to say as being quite positive for both gold and silver.
Though we have seen a bit of a corrective pullback by both metals on Tuesday, a week of light economic data will likely keep gold's value above the $1,300 mark and silver above the $20 mark. While this is the expectation, only time will tell us for sure whether gold and silver will be able to sustain the gains they made on Monday.