Can We Really Trust The Recent Rise in Gold Prices?

Federal Reserve Chairman Ben Bernanke told lawmakers today that a decision to taper the pace of its stimulus program the week in dollars for recovery won't mark the arrival of a tighter monetary policy. But what does all this mean for gold prices today the gold and the dollar attended trade inversely with each other especially in terms of loose monetary policy.

It looks like gold prices have gone up today after looking at the Comex division of the New York Mercantile exchange gold futures for August delivery were up half a percent at now $1200 a troy ounce in US trading on Thursday.

According to investing.com Ben Bernanke had told US lawmakers today at an annual or semi-annual Congressional testimony that this stimulus program will remain in place for the foreseeable future. So for all those that are wondering if the economy is going to recover or going into this recession than we have a few months or even a few years to wait to see what happens. You can read the full article at the link below.

Bernanke told U.S. lawmakers in his semi-annual congressional testimony earlier that stimulus programs will remain in place for the foreseeable future though they may begin to wind down later this year if the economy improves.

ᔥGold gains as Bernanke reassures market tightening not on horizon

you may recall earlier in the year April 2013 the gold prices took a major dip in price going from about $1800 to around $1200 and some and analysts have actually predicted gold prices fall even further but today we have a huge comeback for gold's price and daily finance.com is talked about why prices may have even higher.

as of today July 23, 2013 the price of gold has surged up 13% which happens be its biggest gain in more than a year going up from June's low of $1200 as recent signals from United States Central Bank of continued money printing hold down the value of the dollar and the recently depressed price parks in the Asian bargain hunting market.

Gold bounced back may continue to vindicate the small number of bullish forecasters still keeping faith with the precious metal or the slide that began in late October could resume which could vindicate the many sell side analyst working for giant investment banks who are happy to see gold get what they see as well deserved changes in price.

 

Here's what's happened. From its Oct. 4, 2012, price of $1,804.50 per troy ounce the gold price had, by June 28, fallen to $1,180, a more than one-third plunge in its value. Investors in such popular exchange-traded funds as SPDR Gold Trust andiShares Gold Trust couldn't exit quickly enough. But since June 28, the price of gold has been clawing its way back, and Monday in New York trading it climbed to $1,336.10, a 13 percent gain.


ᔥGold's Comeback: Why Prices May Head Even Higher - DailyFinance

according to Money morning website gold prices have gone up as well and some are comparing this rising gold price to the 2008 era we have the 2008 financial crisis. The physical demand for gold is far outweighing the physical supply of coal. You may recall a few months ago and throughout 2012 that a lot of countries were hoarding gold even the federal reserves in different areas of the world. It seems that there is a lot of people hoarding gold people that own goat or just keeping it there's been a lot of speculation as to whether gold prices will be impacted by that and according to this recent article below you'll read that this is one of the reasons the gold went up in value today.This means the physical demand for gold is far outweighing the physical supply of gold.

Economist Guillermo Barba explained to Reuters, “More and more people want their gold today, at a higher price, no matter that they can buy a future much cheaper.”

Just ask JPMorgan Chase (NYSE: JPM) about that.

ZeroHedgereported last week that 90,311 ounces of the bank's eligible gold was withdrawn in one day. This translates to 66% of the bank's non-registered gold, leaving it with only 46,000 ounces of such gold in its vaults. 


ᔥWhy Gold Prices Are Rising Now - Money Morning

hopefully this gives you some good insights into the price of gold and where the future lies for gold in terms of price and availability as well as where the current financial situation exists and whether or not we're heading into another financial crisis. Thank you for reading.