by Jan Skoyles, TheRealAsset.co.uk
Yesterday Bernanke took a swipe for the price of gold after he said that the FOMC still plans to start scaling back bond purchases later this year. But, as central bankers like to do, he left open the possibility of changing his mind. He attributed any asset purchase tapering to a decisive acceleration in inflation (towards 2% target) and greater gains in the economy than expected. Whilst his prepared statement was seen as dovish, the gold price fell when the follow-up answers in the Q&A were seen as relatively hawkish and weren’t saying much at all.
In the early part of the day, gold flirted with $1,300 reaching a high of $1,299.70 in the morning (US). As well as the release of Bernanke’s prepared statement a report on housing sales also affected the gold price.
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