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Forex: EUR/USD eyes on 1.3080 ahead of German sales	00:02 FXstreet - Forex News
15 to 30 minutes old www.usagold.com --LIVE NEWS--
Dollar Gains Versus Euro, Dow Slips Market Awaits Sequester	23:47 Daily FX
Sibanye Gold’s FY production down 15%	23:47 Mineweb
Gujarat CM Narendra Modi to deliver key note address to Wharton India Economic	23:45 The Economic Times
Copper weakens in futures trade on global cues	23:45 The Economic Times - Markets
Maize prices trim Zambia inflation	23:35 Business Day
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Narendra Modi to address Wharton India Economic Forum	23:34 The Hindu Business Line - News
Rupee hits 1-1/2 month low in opening trade	23:29 Hindustan Times - Business
Italy election punches hole in ECB’s euro defences	23:27 South China Morning Post - Money
Commodity punters may switch from gold to farm bets	23:27 The Economic Times
Jiangxi Copper denies pollution and production irregularities at Dexing mine	23:27 Metal Bulletin
Rupee drops by 15 paise against dollar in late morning trade	23:24 The Economic Times - Forex
Bearishness in gold, silver will remain: Kishore Narne	23:21 MoneyControl.com
Modi to deliver key note address to Wharton India Economic	23:16 Deccan Herald
Comex gold prices ease 1.2% as equities soar	23:12 The Hindu Business Line - Markets
Forex: GBP/USD above 1.5150; slows down avrg vol	23:12 FXstreet - Forex News
Thai inflation dips for second straight month, c.bank seen on hold	23:06 Business Times Online - Asia
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Sell copper, gold; buy silver: Experts	23:01 MoneyControl.com
MCX Gold may trade in 29400-29750 range: Nirmal Bang	23:01 MoneyControl.com
US Dollar Flat as Yen Strengthens but Euro Concerns Resurface	22:57 Daily FX
Blackham Resources achieves 93% gold recoveries at Matilda	22:56 Proactiveinvestors
Silver Lake Resources’ directors increase shareholdings on market	22:56 Proactiveinvestors
Govt raises gold import duty, hopes for a fall in demand	22:56 The Financial Express - Commodities
Gold prices ease 1.2% as equities soar	22:56 The Financial Express - Commodities
Economic Death By A Thousand Cuts	22:55 Business Insider - Finance
Is gold's glitter wearing off?	22:51 TV3 News - Business News
Global gold heads for 3rd week of loss	22:44 The Economic Times - Markets
Trade deficit high, expected to worsen	22:44 Business Day - Economy
'Forex reserves at $295 bn as on end-Sept'	22:43 Business Today - Economy
Forex: EUR/USD continues sequestered by sellers	22:42 FXstreet - Forex News
Talaibek Koychumanov: Kyrgyzstan has already survived the economic slump	22:31 24kg.org - Business
Economy barely expands in fourth quarter, brighter days ahead	22:29 Yahoo! US - Business
US economy did not shrink last quarter, as first thought; stronger growth expected	22:16 Berkshire Eagle Online, Massachusetts - Today's Headlines
LME ASIAN WRAP: Copper prices hit two-month low on China, US worries	22:16 Metal Bulletin
L-com Customer Service Department Earns Third Gold Stevie® Award from the American …	22:11 Yahoo! US - Business - Press Releases
2 to 4 hours old www.usagold.com --LIVE NEWS--
US economy barely grew in Q4, but rebound seen as likely	22:04 The News Journal, Delaware - Business
U.S. economy will likely rebound from weak quarter, economists say	22:02 The News & Observer, North Carolina
Queensland Mining Corporation continues to drill high grade copper at Greenmount	22:01 Proactiveinvestors - Australia
Rupee hits 1-1/2 month low	22:01 Reuters - Business
Why Silver Is a Better Sequestration Bet Than Gold	21:54 The Motley Fool
Rupee down 30 paise against dollar	21:50 The Hindu - Markets
Italian poll disarms the ECB’s ‘bazooka’	21:47 FT.com
Dollar turns to follow US equities	21:47 FT.com
Euro nears $1.30 against the dollar	21:47 FT.com
Bears put brakes on yen depreciation	21:47 FT.com
A not-so-secret sterling devaluation ploy	21:47 FT.com
Economy in brief: CIMB Niaga, Tirta Gemah sign loan agreement	21:47 Jakarta Post - Business
Economy in brief: Rupiah forwards head for best month	21:47 Jakarta Post - Business
Rupee down 30 paise against US dollar in early trade	21:46 The Financial Express - Banking & Finance
Thai February Inflation Slows a Second Month as Food Prices Fell	21:46 Bloomberg - Economy

Gold's BFF

by Peter A. Grant

Feb 27, AM
(from USAGOLD.com) --

Gold is modestly lower this morning after posting the biggest one-day rise in about three months on Tuesday. The rise back above the $1600 level can be largely attributed to Ben Bernanke's clarification of Fed policy before the Senate Banking Committee.

When gold dropped sharply last week, it was weighed in part by more concerns expressed in the January Fed minutes about the effectiveness and costs of quantitative easing. The market read this as an increase in the risk that the Fed would be removing accommodations sooner rather than later. Bernanke put those concerns to rest yesterday, saying that the benefits of QE still outweigh the costs.

I'm not sure I personally agree with Mr. Bernanke, given that the costs have resulted in a Fed balance sheet in excess of $3 trillion. That's a lot of money in anyone's book; and yet economic growth remains tepid at best and the jobless rate remains elevated.
In fact, the latest data showed a 0.1% contraction in Q4 GDP and the unemployment rate ticked higher to 8% in January. One might expect a little better performance from a $3 trillion investment by the Fed on top of trillions of dollars in deficit spending over the last several years by the federal government.

Not surprisingly, the Fed chairman reiterate the guidance provided by the FOMC back in December. “The FOMC has indicated that it will continue purchases until it observes a substantial improvement in the outlook for the labor market in a context of price stability,” Bernanke said in his prepared statement. Translated that means the Fed will keep rates pegged at zero and continue with $85 bln in monthly asset purchases until the unemployment rate drops to 6.5%, or inflation as measured by PCE exceeds 2.5%, neither of which is going to happen any time soon.

Bernanke has proven once again to be gold's best friend. A truth that was nicely illustrated in yesterday's MoneyGame Chart of the Day, which showed gold's performance under the last four Fed chairmen.

Here's how they stack up:

G. William Miller from March 1978 through August 1979, gold rose 47.5%.
Paul Volcker from August 1979 through August 1987, gold rose 65.0%. (Note: This period includes the drop in gold from the January 1980 record high of $850)
Alan Greenspan from August 1987 through January 2006, gold rose +14.5%.
Ben Bernanke from February 2006 to present, gold has risen 182.9%.

Bernanke's term as Fed chairman doesn't end until January 2014. Based on the Fed's own central tendencies, the jobless rate will still be above the 6.5% target and inflation will still be in check, so presumably the central bank will still be engaged in super accommodative policy at that point. Consequently, I think the long term uptrend in gold is not in any immediate jeopardy.

There has been some speculation that Bernanke might not serve a third term even if asked. The retirement of gold's best friend of the last 35-years might be cause for concern, but Vice-chairman Janet Yellen is seen as a frontrunner to replace Bernanke. Yellen is an even bigger dove than Bernanke, and given enough time, I suspect she might prove to be an even bigger friend to gold.

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