The Fed chairman also cautioned in a speech that the nascent housing market recovery is fragile, with the implication that the market continues to need the Fed’s support buying mortgage-backed securities.
The Fed’s commitment to further easing should help support precious metals as a hedge against potential debasement of the US dollar.
Key events to watch this week
The Eurogroup will meet this week to discuss a strategy to bring Greece’s debts down to a sustainable level. Disagreement between the EU and the IMF on how to put Greece on a sustainable path is holding back the release of the 31.5bn euros tranche to Greece.
In addition, a number of European parliaments need to agree to the payment before it can be dispersed. The continued uncertainty will likely keep markets on edge a while longer.
ETFS Physical Swiss Gold Shares (NYSEArca: SGOL)
