Asia Bizz: Gold And Silver Prices Tear The Roof In The US
Gold and Silver prices in the US are tearing the roof, and it seems these precious metals will be getting even dearer in the future. Gold slapped at $1400 an ounce, which is a near an all time high, and Silver on the other hand has touched $27.43 on Monday. The steep rise in the precious metal prices have come after the announcement of the $600 billion stimulus package by the Federal Reserve for the US economy.
Investors have now become worried about the rising prices, and its effect on the inflation. The Federal Reserve has stated that it will be buying $600 billion as long term treasuries by the mid 2011. This has now caused the dollar to fall considerably and rose the value of oil, gold, coffee, sugar and silver in the country.
One of the major points that has been pondering the world governments and especially the US, that as the USD is falling consistently, most of the commodities in the world are valued in dollars, as a result this will be making them cheap and devalue their status during international trade.