Precious metals prices started off the week with little movement despite their sharp rise during last Friday following the disappointing U.S employment numbers. The premise behind this speculation was that since the U.S economy is showing signs of slowdown, this could push the Fed towards issuing another stimulus plan, which will help rally gold and silver. This idea took a hit in the chin when Bernanke testified in the Senate on Thursday; he stated economic conditions are improving mainly the U.S real estate market; he also said the U.S labor market isn’t in such a dire condition as many had claimed; he voiced his concerns revolving the European debt crisis; he didn’t refer to any additional plans the Fed might consider in the future and as usual kept the door open on QE3. This testimony brought down the renewed hopes of another QE3 and thus dragged down precious metals prices.
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