Today’s AM fix was USD 1,355.25, EUR 1,002.18 and GBP 845.39 per ounce. Yesterday’s AM fix was USD 1,363.50, EUR 1,005.90 and GBP 848.16 er ounce
Gold fell $1.10 or 0.08% yesterday, closing at $1,365.20/oz. Silver dropped $0.08 or 0.35%, closing at $23.01. At 3:41 EDT, Platinum fell $3.70 or 0.3% to $1,458.80/oz, while palladium rose $13.85 or 1.9% to $730.59/oz
Gold edged off since its rally after the U.S. Federal Reserve decided to maintain its current stimulus program. The yellow metal added nearly 3% for the week and is on track for its biggest gain in five weeks. Gold bullion rallied 4.1% on September 18th after the Fed cited it needed to see more examples of economic recovery before it reduces the $85 billion-a-month of bond buying.
Bernanke clearly stressed that the quantitative easing program was "not on a preset course". The "no tapering" was a surprise to the market as bullion fell almost 20% this year in anticipation of a wind down in bond buying, but it has now gained from technical buying and short covering since the news.
Dr. Ron Paul, a former republican member of U.S. Congress from Texas discussed the Fed decision on Fox Business News segment, After the Bell.
David Asman: What do you think about the Fed’s decision to continue money printing?
Dr Paul: I think it’s a very bad sign I think it means the Fed is really worried.
David Asman: Worried about what?
Dr Paul: About the economy. They are always bragging that things are really well, employment is up.
The seed of deception that they put out there is that things are really good. So now they are saying no, now it isn’t good and we have to keep inflating. So I think it's a bad sign but the markets liked it.
David Asman: The markets are doing well but the average American’s income is flat, plus add in even the little bit of inflation that the Fed is willing to admit to and frankly it is more than that because they are not including food and gas. Even then they lose value as a result of their income being stagnant.
Dr Paul: Think about it in a moral sense even if he gets his 2%? What right does the Fed have to take away 2% of their purchasing power automatically? What right do they have to punish the elderly who save money? I asked Bernanke and Greenspan the question and they throw their hands up and say that they feel some people will benefit by this.
David Asman: What happens now? If it’s Yellin she'll be like Bernanke on steroids. What does that mean for our economy?
Dr Paul: Prepare for the destruction of the dollar and the crash of the bond market one day. The bond bubble is weakening although the interest rates have doubled in the last year.
David Asman: The bond rates have fallen tremendously today 16 basis points (2.69%).
Dr Paul: Yes. But you wait and see the trend will be zig zagging up. The prices are going up and standard of living is going down. The worst political problem we have is the discrepancy between the poor and middle class and the wealthy.
David Asman: I feel I have to defend the Fed because the housing market has benefitted from these low interest rates.
Dr Paul: Well yes some places yes, but I don’t know if it’s because of all good investment, since they get the signal from the Fed not their own savings. I hear adverts on the tv that you can still renew your mortgages with nothing down.
David Asman: Harkening back to the financial crisis.
Dr. Paul: Yes, but as long as the interest rates are artificial you get mal-investment or misdirected investment but you don’t know it’s a problem until the crisis comes.
David Asman: What about Congress anyone there on it? Anyone following in your footsteps?
Dr. Paul: Sure there are a few people in the house and my son. It's amazing I was at a book signing last night and someone wanted to talk about the Fed. I said, “how old are you?” and the answer was 14. So money is a big issue!
David Asman: Will it be a big issue in the next presidential election?
Dr. Paul: Yes it will continue to be a subject. People recognize that the Fed doesn't give us nirvana or perfect economies and it can’t do much now to get us out of problems.
David Asman: Will you run for office again?
Dr. Paul: I will try to influence young people and energize the movement. Our campuses are alive and well. They are interested free markets, liberty and in the National Security Agency and our privacy. There is a lot to be optimistic about in the long run but in the short run we are in going to have to go through some tough times.