Daily Bullion Market Update 6/08/11
Gold is down $9.20 today, closing at $1,536.10 in reaction to Ben Bernanke’s speech late yesterday. Bernanke, Chairman of the Federal Reserve, offered no hints of further U.S. monetary easing but did acknowledge the economy has slowed. The Dollar strengthened and the gold/silver mining stocks sold off. This is not surprising to me, whether it comes from the Fed or the Obama administration; I don’t believe we will see any additional stimulus programs or monetary easing announced until after Congress agrees to lift the U.S. debt ceiling.
The price of Crude Oil jumped $2 after OPEC failed to reach an agreement on crude production for the first time in at least 20 years. Six countries opposed a Saudi Arabia-led group that urged members to raise output. Many observers called the meeting chaotic.
In less than a year, Obama has lost two heads of his Council of Economic Advisers now that Austan Goolsbee announced yesterday that he’s leaving the post. What is that telling you about the outlook for our economy? The future of the Dollar isn’t looking good, and an article from Mike Getlin “The Boat is Sinking! Throw the Dollar Overboard” clearly defines the problem.
Read the article at: http://www.mintstategold.com/investor-education/cat/news/post/throw_dollar_overboard/
Silver closed today at $36.51 an ounce, down $0.64 on concerns of the possibility of a double dip recession within the U.S. Silver continues to stay in a bullish trading range and finds excellent buying support at the $35 range.