Gold Prices and Silver Prices Surge Ahead Of Possible Fed Rate Cut

Both George Bush and Fed head Ben Bernanke are making speeches today that are expected to focus on the credit crunch and the crisis in the US mortgage and home loan markets.

Speculation that the Federal Reserve is going to cut interest rates has caused both gold and silver prices to surge in trading in London today, and the gains are being held in New York.

Currently, gold prices are up $7.80 at $672.90 per ounce and silver prices have risen 26 cents to $12.02 per ounce. Therefore gold prices are up 1.17 percent whilst silver prices are up 2.21 percent.

Precious metals analyst Sam Kirtley of The Silver Prices Newsletter and The Gold Prices Newsletter said he had been expecting a sharp rise in prices: “We flashed a BUY signal to our readers on silver when it was at $11.80 (spot price), predicting a $1.00 rise in silver prices over the next few weeks. That prediction is beginning to come true but today’s gains will be dwarfed by the rise that will take place when the Fed lower interest rates.”

The Chairman of the Federal Reserve, Ben Bernanke is expected to make a speech today and George Bush is set to make his speech in the next half an hour.

Stay tuned to Product-Reviews Business for updates on this situation and breaking news on the two critical speeches taking place today.

What do you think Bernanke and Bush will say in their speeches today?

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