Find Out Why Gold Coin Investors Are Encouraged About The Fed's Plan Directly At Gold-Coin.com
February 24, 2010 – Encouraged by today’s testimony of Federal Reserve Chairman Ben Bernanke, gold coin investors are looking forward to a continued rally by gold prices. Gold fell in the morning, but traded steady throughout the afternoon as Bernanke confirmed that in spite of looming inflationary pressures, the current low interest rates are necessary as the country continues its attempt to climb out of fiscal distress. Gold prices closed the day’s trading at $1,098.20, staying close to the important $1,100 per ounce resistance point.
Giving his twice-a-year report to the House Financial Services Committee, Bernanke did not dispel the concern of impending inflation, offer any hope about record-low new home sales, or predict a drop in unemployment rates, he merely confirmed that the economy is still struggling and the flood of low-cost funds needs to continue pouring into the market to keep from disrupting any improvements.
The testimony today was largely good news for gold coin investors, who view liberal money supplies as a benefit for people who want to invest in gold or other commodities. Tightening money supplies generally reduce investor appetite for risk and lead many away from additional gold investment. After trading steady during the afternoon session, after-hours investors pushed prices near the $1,100 per ounce level, gaining more than $1.00 as traders begin moving back into gold positions.
Many analysts expect the sell-offs of gold are likely to end. "The selling has abated because of what Bernanke said. We remain more on the sidelines to see which way the market will trade in the near-term”, said George Gero, vice president of global futures at RBC Capital Markets. Investors should view the Fed report as favorable and continue looking for advantageous points to re-enter the gold coin market.
Senior Staff Writer - Gold-Coin.com