Gold and silver prices ended August with moderate gains, but by the end of last
week they have risen very sharply. On Friday, the US labor employment report
didnt show any increase in employment; this news is probably one of the factors
that drove the US stock markets down and pushed gold and silver prices up. This
news along with the slight slowdown in the growth of US PMI manufacturing index
may have rekindled the debate over the chances of another stimulus plan by the
Federal Reserve. If QE3 will be implemented, it may add inflation pressures in
the US and drive major commodities prices further up. Currently, however there
is no evidence that the Fed will issue a QE3.
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