Daily Bullion Market Update 11/3/11
By Barry Stuppler – MintStateGold.com
The interest rate cut by the European Central Bank today started a gold rally in Europe this morning, which continued into U.S. trading. As of 11am PDT today, gold is trading at $1,764.50, up $30.40 per ounce on excellent volume.
Chairman Bernanke has positioned the Federal Reserve to launch a QE3 program within the next few months. The Federal Reserve changed its earlier forecast and lowered its inflation and GDP, and increased unemployment until 2014. These three key economic factors show that our central bankers believe we are heading into a double dip recession. During Wednesday’s news conference Ben Bernanke made it very clear the Federal Reserve is considering a third round of monetary easing if there forecast become fact.SILVER
Silver again took direction from gold trading and at 11am PDT was up 42 cents at $34.52 per ounce in active trading. Asian markets continue to show high demand for the metal.
Other Important news that affects precious metal prices:
New applications for jobless benefits fell by 9,000 last week to 397,000, the Labor Department reported on Thursday. Economists surveyed had expected new claims in the week ending Oct. 29 to fall to 400,000, on a seasonally adjusted basis. Initial claims from two weeks ago were revised up to 406,000 from an original reading of 402,000.
The productivity of U.S. businesses climbed 3.1% in the third quarter as workers produced more goods and services in nearly the same amount of time, according to the Labor Department. Economists had expected productivity to increase by 3.7% in the third quarter.