Gold and Silver prices have comedown this morning as media reports banking on JP Morgan Chase say that Federal Reserve Chairman Ben Bernanke will not use his Jackson Hole speech to suggest a bond-buying program is “imminent”.
Actually, the markets are in a wait and see mode, said David Lennox, a resources analyst at Fat Prophets in Sydney toBloomberg News. “The data to date continue to suggest this wait-and-see approach is vindicated.” he added.
Meanwhile, Martin Patrick, a Kochi based economist is of the opinion that a QE 3 may be expected as election in US looms and the government seeks to impart some momentum to the current U-turn the economy has taken.
“The government would want to create a feel-good ambience in the country.” he said. “The Jackson Hole speech could see Bernanke announcing a QE3 worth $300 bn”, he added.
The measure, if carried out would drive precious metals higher.
Gold for September delivery dipped as much as 0.4 percent to $1,657.50 an ounce and was at $1,661.13 at 12:41 p.m. Singapore time.
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