Gold and Stocks Climb Higher as Ben Bernanke Wraps up Testimony
Both precious metals were relatively quiet, as stocks made fresh all-time nominal highs and Federal Reserve Chairman Ben Bernanke concluded his semiannual monetary report to Congress.
Bernanke reiterated the central bank’s stance that a reduction in bond-purchases does not mean policy is tightening. He explained, “We have not changed policy. We are not tightening policy.” With inflation low and unemployment high, he said, “we need to maintain a highly accommodative monetary policy for the foreseeable future, and that is what we intend to do.”
The Dow Jones Industrial Average reached an intraday high of 15,589.40, with companies such as International Business Machines (NYSE:IBM) and UnitedHealth Group (NYSE:UNH) leading the way. Meanwhile, the S&P 500 hit as high as 1,693.12. In fact, the S&P 500 now has a market value of more than $15 trillion.
In afternoon trading, shares of the SPDR Gold Trust (NYSEARCA:GLD) increased 0.70 percent, while the iShares Silver Trust (NYSEARCA:SLV) gained 0.60 percent. Gold miners (NYSEARCA:GDX), such as Newmont Mining (NYSE:NEM) and Yamana Gold (NYSE:AUY), both climbed about 1 percent higher. First Majestic Silver (NYSE:AG) declined 1.5 percent.
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Disclosure: Long EXK, AG, HL, PHYS