Gold prices closed the last full trading session on the negative side of
break-even. Gold prices dropped in noteworthy fashion during the course of the
last week and many attribute the declines to comments made by Federal Reserve
Chairman, Benjamin Bernanke. Bernanke issued statements last week which was void
of commentary supporting another round of quantitative easing for the U.S. Gold
prices dropped lower as a result. Although gold price dropped lower last week,
it should be noted that prior to comments made by Bernanke, gold price
trend-line had been stronger on the year by about 10 percent. A minor correction
was inevitable. When you add in the reactions of investors to Bernankes
comments, one can imagine that the negative pressure gold price experienced was
more of an overreaction. Demand for gold bullion is still globally strong,
especially in China and India. Also of interest is a public survey which posed
in Forbes last week. Of the participants surveyed, approximately 64 percent of
them believed that gold prices will rebound and rise this week. We shall see.
April contract gold finished the last session lower by 10.50 at 1709.80 per troy
ounce. Silver contract finished lower by 3.19 percent at 34.52 per troy ounce.
Spot gold per gram and spot silver per ounce: Spot gold price and spot silver
price were both posting red prior to opening bell this morning. Spot gold per
gram was lower at 54.52 and spot silver per ounce was lower at 34.11. Camillo
Zucari
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