Auguries—Scrooge Turns Left
March 29, 2012
By Kevin Michael Grace

Gold was up (at press time) $10.10 (+0.6%) for the week to $1,655, and silver was up $0.41 (+1.3%) to $31.58. According to Reuters, gold “has struggled for traction after a rally early in the week sparked by Federal Reserve hints that accommodative monetary policy is set to persist.”

The reference above is to a Monday speech by the Ben Bernanke, wherein he fretted that recalcitrant joblessness was “something of a puzzle” and declared, “While both cyclical and structural forces have doubtless contributed to the increase in long-term unemployment, the continued weakness in aggregate demand is likely the predominant factor. Consequently, the Federal Reserve’s accommodative monetary policies, by providing support for demand and for the recovery, should help, over time, to reduce long-term unemployment as well.”

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