Gold Bullion (GOLD)

[CaptWhizbang]

Comex Gold Extends Sharp Losses in Wake of Bernanke; Move Below $1,600 Deflates Bulls

Thursday June 07, 2011 11:21 AM


Comex gold futures prices have extended already sharp losses in late-morning trading Thursday and have dropped below what was psychological support at the $1,600.00 level. The yellow metal has dropped sharply in the aftermath of Federal Reserve Chairman Ben Bernanke's speech to the Joint Economic Committee of the U.S. Congress. Bernanke said the U.S. is facing economic headwinds, especially due to the European Union debt crisis, but offered up no specifics on any fresh monetary stimulus package to promote more economic growth. The restrained tone of Bernanke's speech disappointed gold market bulls who wanted immediate gratification on economic stimulus. However, Bernanke at this time holding his cards close to his vest on the matter did not surprise most market watchers--many of whom still reckon the Fed will at some point down the road provide fresh monetary policy easing. The gold market bulls did lose their newfound upside near-term technical momentum with Thursday's sharp losses. August gold last traded down $44.00 an ounce at $1,589.00.

http://www.kitco.com/reports/KitcoNews20120607JW_update2.html