Central Banks Lower Interest Rates Boosting Gold and Silver Prices
Investors are witnessing renewed strength in precious metals after the Fed announced the expansion of Operation Twist until at least the end of the year.
Similarly, gold and silver have been recently moving higher based on the Eurozone stocks breathing a sigh of relief as the summit came up with a purported solution to reduce funding costs particularly for Italy and Spain worth a $149 billion. This may stimulate the Eurozone in addition precious metal investors appear to be optimistic as the European Central Bank and the People’s Bank of China concurrently will ease interest rates to stimulate global growth in the depressed Eurozone which is experiencing record unemployment. So optimism is returning to Europe while the U.S. which has heretofore been a safe haven is beginning to show signs that unemployment may be lurking higher.