Yesterday, Federal Reserve chief Ben Bernanke made comments hinting at more easing, which gave commodities and commodity-linked currencies a reason to rally. That was an about face that markets clearly had not foreseen, given that the Fed’s most recent “official” discourse on February 29th said nothing of more QE, which led to speculation even that the Fed’s commitment to long-term, ultra-low interest rates might have to be reconsidered. Gold prices initially surged on the news, rising to $1,693.39 on Monday but have since retreated and are now at $1688.30. Read more
