By Barry Stuppler - MintStateGold.com
I hate the “I told you so” type people, So, I will not say it.
Gold is trading at a new ALL-TIME HIGH of $1,584.10 at 11am PDT today, up $22.70 per ounce on very active trading. Gold has now increased in value seven days in a row. The major stimulus for gold today was Federal Reserve Chairman Ben Bernanke's testimony to Congress today that the Fed would be willing to provide another round of monetary easing if required.
The Gold price increase was in the face a strong U.S. Dollar vs. the Euro as Ireland’s credit rating was cut to non-investment grade, joining Portugal and Greece to become the third euro-area country to be lowered to junk rating. Portugal’s rating was cut four levels to Ba2 July 5, by Moody’s.
The minutes of the June 21-22 Federal Open Market Committee (FOMC) meeting were released yesterday and even the mention of a possible QE3 sent the precious metal markets ballistic. The news drove gold up to $1,574.50, within $3 of the all-time high of $1,577.40 hit of May 2nd. Gold also reached a record All-Time high valued in Euros and British Sterling.
At the June 21-22 meeting of the Federal Reserve, the governors noted that if the economic growth remains too slow to make satisfactory progress towards reducing the unemployment rate it would be appropriate to provide additional monetary policy. In short, a third round of quantitative easing (QE3) is a strong possibility. As I have stated numerous times before, I believe we will hear an announcement of some type of monetary easing from the Federal Reserve or the U.S. Treasury after the Congress reaches an agreement on lifting the Debt Ceiling. The next meeting of FOMC will be on August 9th.
WOW, Silver is up $2.05 per ounce at 11am PDT today, trading at $38.10 on heavy trading. After six weeks of base building in the $33.50 to $38.50 range, Silver has finally returned to the highs, which has offered resistance in the past. If Silver can breakout above $39 per ounce, we could be off and running. When gold breaks above $1600 per ounce it is good bet silver will run with it.