Bernanke's Comments Send Gold & Silver Prices Skyrocketing

Gold and silver prices rose Thursday after the chairman of the Federal Reserve said the economy won't recover fully until more jobs are created.

The economy likely will grow more quickly this year as companies and consumers spend more, but it will take several years for unemployment to fall to more normal levels, Fed Chairman Ben Bernanke said in prepared remarks to the National Press Club.

His speech suggested the Fed will continue its $600 billion Treasury bond-buying program aimed at bolstering the economy.

Earlier Thursday, European Central Bank President Jean-Claude Trichet said inflationary pressures in the 17 nations that use the euro are in check despite rising prices due to higher energy and commodity costs. The bank's governing council decided unanimously to leave the main interest rate unchanged at 1 percent.

CPM Group analyst Carlos Sanchez said the combination of Bernanke and Trichet comments prompted more investors to buy gold and silver, which often are seen as safer assets to hold during uncertain economic times.

[link to hosted.ap.org]

Last Edited by CrazyJarhead on 02/03/2011 06:04 PM