marketwatch.com
Dec. 7, 2009, 1:54 p.m. EST · Recommend (4) · Post:
Gold falls for second day as Bernanke sees low inflation risks
By Moming Zhou & Polya Lesova, MarketWatch
NEW YORK (MarketWatch) -- Gold futures fell Monday, pulling back from record highs, depressed by a higher dollar and comments from Federal Reserve Chairman Ben Bernanke that inflation will remain "subdued," reducing the metal's appeal as a hedge against rising prices.
"The Fed is committed to keeping inflation low and will be able to do so," Bernanke said to a group of economists in Washington. However, inflation "appears likely to remain subdued for some time."
Gold for December delivery dropped for a second session, down $8.80, or 0.8%, to $1,160 an ounce on the Comex division of the New York Mercantile Exchange, further pulling back from last week's record highs.
The contract had been lower ahead of Bernanke's comments, falling as far as $1,136.30 an ounce, or the lowest intraday level since Nov. 20, on speculation that a faster recovery in the U.S. labor market could push the Fed to raise interest rates sooner than expected.
In a midday speech, Bernanke said the central bank will raise interest rates to keep inflation under control when the time comes, but he emphasized that time could be far away.
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How far away??
This is the same person told every one that there were no housing bubble and no financial melt down. ha |
