Gold futures fell Thursday breaking a two session
winning streak after Federal Reserve Chairman Ben
Bernanke’s testimony to Congress showed the Fed stood
ready to act in the event that Europe’s crisis worsens, but
offered no hint of what the central bank might do at its next
policy meeting.
Key News highlights:
Federal Reserve Chairman Testimony– The Federal
Reserve in his testimony said that the Federal
Reserve is ready to act to protect the financial
system and the economy in the event that financial
stresses from the European crisis escalate. The
situation in Europe poses significant risks to the U.S.
financial system, he said. Fed did not give hint about
what the Fed might do at its next policy meeting on
June 19 and 20. On Wednesday, several key Fed
officials said they were open to more easing if
warranted. Overall the testimony was in line with
expectations.
China Rate Cut- China's central bank on Thursday
lowered one-year lending and deposit rates by 0.25
percentage point, effective from Friday, and moved
to allow rates to float more freely, in a bid to support
economic growth and advance reform of the financial
system. In effect, maximum deposit rates will rise
slightly after the changes, and minimum lending
rates will fall sharply. The move will likely reduce
concerns related to China slowdow
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