Would it surprise you to discover that China is planning to add 800 miles to its subway system over the next two years? That’s the distance equivalent to building a network from Dallas to Chicago in less time than the U.S. Congress can resolve a budget!
The volume of holding held to back shares in the SPDR Gold Trust (ticker GLD), the world's biggest gold exchange traded fund, fell for the tenth straight session yesterday, the first time this has happened since the GLD was launched in 2004.
Some people may look at the stock market and see economic recovery. Eric Sprott of Sprott Asset Management and Sprott Money looks at myriad other economic indicators and sees an economy still in decline.
During his testimony before Congress this week, Federal Reserve Chairman Bernanke made it a priority to dampen the growing concern that the unprecedented growth of the Fed's balance sheet presents great risks to the economy.
It was not exactly a lovely February for gold bugs. Between talks of a great rotation into risk-on assets, and confusing language from the Federal Reserve, the precious metal experienced heavy-selling pressure to reach new multi-month lows.
U.S. dollar gold bullion prices fell slightly in Wednesday morning's London trading, but held above the $1,600 per ounce level it rallied above yesterday after Federal Reserve chairman Ben Bernanke told Congress that that Fed's ongoing quantitative easing policy "is providing important support to the recovery."
Gold futures prices are moderately higher in early trading Tuesday and briefly pushed above $1,600.00 as fresh safe-haven demand has surfaced amid a flare-up in the European Union sovereign debt crisis.
U.S. dollar prices for buying gold rose briefly above $1,600 per ounce Tuesday morning before falling back, while silver failed to hold above $29 an ounce and stock markets fell following the inconclusive Italian election result.