By Lujia Lin, Bernanke testimony inCongress makes no mention of further easing > Markets had beenpricing in some sort of additional stimulus > Goldand silver plummet Gold and silver posted their biggest intraday drops in over two-and-a-half months as Federal Reserve Chairman Ben Bernanke dampened expectations for further monetary stimulus and pushed the USD higher. As of 18:11 GMT, spot gold was down by 3.32 percent at $1,724.77 and spot silver was down 4.77 percent at $35.14. For both commodities, this was the steepest drop since December 14. Gold Silver Charts generated using FXCM Netdania In his semi-annual testimony before Congress,Bernanke provided no hints as to additional measures that the Fedcould undertake to stimulate economic activity in the UnitedStates. While maintaining that the situation remains “farfrom normal,” the Fed chairman noted improvements in terms ofunemployment, which fell to a three-year low of 8.3 percent inJanuary. Further adding to the case that the economic recovery isgaining momentum without need for additional stimulus, US GDPgrowth for the 4 th quarter was revised up to a 3.0 percentannualized rate from 2.8 percent. At the same time, Bernanke addedthat the Fed’s pledge to keep interest rates low until late2014 was “conditional” upon econnomicdevelopments.
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