Auguries - March 3, 2013 Auguries - March 3, 2013
Virtual Reality
Kevin Michael Grace
Gold was down (at press time) $3.60 (-0.2%) for the week to $1,575.70, and silver was down $0.15 (-0.5%) to $28.60. Gold made big gains earlier in the week, but these were wiped out Wednesday and Thursday. According to Reuters, “Bullion dropped as the dollar rose after US economic data including consumer spending, consumer confidence and factory activity all pointed to a pickup in economic growth. Some investors believe a better US outlook could prompt the Federal Reserve to halt its stimulus earlier than expected.”
One person who doesn’t believe that the Federal Reserve will be prompted to halt its stimulus earlier than expected is its Chairman, Bernancus Magnus. He told the Senate Banking Committee February 26, “The benefits of asset purchases and of policy accommodation more generally, are clear…. To this point, we do not see the potential costs of the increased risk-taking in some financial markets as outweighing the benefits of promoting a stronger economic recovery and more rapid job creation.”
Given that the “economic recovery” and “more rapid job creation” are both entirely putative, we can expect an end to quantitative easing the day after Black Tuesday II or whenever Jesus returns, whichever comes first.
Read the rest of this article about gold prices here.