Auguries — The Great And Powerful Oz
March 1, 2012
By Kevin Michael Grace

Gold was down (at press time) $59.10 (-3.3%) for the week to $1,722, and silver was up $0.14 (+0.4%) to $35.62. Gold made a modest (and silver a more robust) recovery Thursday, but on Wednesday gold fell almost $100 at one point, with silver falling over $2.50.

The Globe and Mail noted, “Gold’s plunge to less than $1,700 an ounce marked the biggest one-day percentage drop for the metal in more than three years.” It attributed the Leap Day Massacre to the Ben Bernanke having “delivered three hours of testimony without once indicating he felt the need to create more money.” This was the majority view. The Globe quoted Jon Nadler of Kitco, who “said some investors had been expecting that Mr Bernanke, in Congressional testimony, would indicate the Fed was open to another round of so-called quantitative easing—a policy that creates new money and causes people to flock to the perceived safety of gold to protect themselves from inflation.”

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