Commodities Surge After Bernanke’s Speech
Crude oil, gold and silver jumped today as Federal Reserve Chairman Ben Bernanke suggested that quantitative easing is possible. Bernanke complained about the high unemployment rate and said that QE has done its job previously. That was not specific enough in terms of timing of such action from the Fed, disappointing some traders, but Bernanke’s speech was
The expected asset purchase program, known as quantitative easing, should be positive for commodities as it would spur economic growth. Growing economy increases demand for fuel, helping oil. At the same time, economic growth is followed by accelerating inflation that is supportive for gold.
Crude oil advanced from $94.66 to close at $96.38 per barrels on NYMEX today. Gold jumped from $1,655.56 to $1,691.93 on COMEX. Silver soared from $30.39 to the closing price of $31.69 per ounce in New York.
If you have any questions and comments on the commodities today, use the form below to reply.