Commodities Brief – Precious metals trading with volatility following Bernanke testimonial, gold prices cannot sustain 1400 level
Gold prices surged Wednesday, after Federal Reserve Chairman Ben S. Bernanke warned today in a recent testimony that the U.S. economy remains hamstrung by high unemployment and government spending cuts, and tightening policy too soon would endanger the recovery. Indeed, the prices bounced from 1387 to session highs at 1409 during US trading. However, in recent moments, the 1400 level proved to be too much to handle at the moment, causing a movement back towards USD $1396.20 per oz. at the time of writing. Prolonged stability above the 1400 level would effectively cancel an intraday bearish scenario.