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The Federal Reserve’s plan to inject ample amounts of greenback into the economy is being debated as a reason that commodity values are on a tear. Silver price per ounce went up today and many are wondering if the Feds stimulus plan is causing a bubble that might burst. Economists report that the Fed's announcement to purchase $600 billion in Treasuries, to boost the sluggish economy, will put pressure on the U.S. dollar. The Federal Reserve's plans to buy Treasury bonds should continue to make positive waves in the realm of precious metals and other commodities but is it too much all at once? Federal Reserve Chairman is having to defend this plan however. Critics of the plan feel that the large amount of the greenback that is being injected into the economy could prompt inflation or bubble pricing of bonds and commodities. Gold hit record highs today and silver prices bumped up to fresh 30-year highs. Specifically, silver prices rose $1.47 an ounce to end at a 30-year high of $28.91 per ounce. The dollar recovered a bit today and gained .0084 on the euro. Thursday will bring discussion relevant to the two-day summit in Seoul where world leaders, including President Obama, will gather to discuss currency rates and relevant economic data. Outcome posts will affect Commodity trending. Author: camillo Zucari
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