Volatility in the gold market escalated following release of Fed Chairman Ben Bernake’s prepared remarks from his speech in Jackson Hole, Wyoming.
There, the Fed Chairman did not specifically refer to a third round of quantitative easing (QE3), despite noting that the U.S. economy has slowed considerably in recent months.
Gold futures – per the COMEX December 2011 contract – initially tumbled from $1,794 to $1,767 upon the release of Bernanke’s speech, but quickly rebounded to an intra-day high of $1,800.00.
The yellow metal then pared its gains, but remained higher by $28.30, or 1.6%, at $1,791.50 as of 10:30am ET.
While gold held firm, the broader markets initially extended their decline but then quickly pared their losses. The Dow Jones Industrial Average (DJIA) was most recently lower by 96.23 points, or 0.9%, at 11,052.59 .