The value of gold is yet again targeting $1700 per ounce after Bernanke’s QE hints and the OECD proclamation to boost the Eurozone ‘firewall’ by another $1.3 trillion. The gains came after Ben Bernanke warned of the risks to the fragile US economic recovery and signaled the Fed would keep interest rates low and further debase the dollar-boosting gold’s inflation hedging appeal. Gold is also likely being supported by the OECD’s warning that the debt crisis which enveloped the degrading euro zone is not over despite calmer financial markets this year and warned that Europe’s banks remain weak, fiscal targets are far from assured and debt levels are still on the rise. The OECD said that the Eurozone needs to boost crisis “firewalls” to at least by $1.3 trillion. Gold has in a way benefited from the words of the OECD and has linked the words to the supposed uptrend of gold.

Despite the improving employment data in the recent memory, Bernanke confirmed that the USA’s rate and nature of unemployment continues to hamper any real growth in the world’s largest economy and the labor markets are still worrisome compared to prior recessions. Bernanke furnished that loose monetary policy was still needed and he again hinted another round of QE including the dreaded asset purchase. His comments means that gold’s recent corrections may be coming to a close-especially as the fundamentals remain as compelling as ever.

Another important round of news which has escaped the attention of the traders is the impact of the current Indian gold jewelers strike. Indian jewelers are on the strike to protest against a government levy on gold and the strike is entering its 11^th day in most parts of India. It has brought gold imports to a near standstill from the world’s biggest buyer of bullion in the peak wedding season. For the second time in the year, the Indian government doubled the import tax on gold coins and bars to 4% along with an excise duty of 0.3% on unbranded jewellery. Already there is speculation that while the demand may fall there may be a sharp increase in smuggling of gold into India from neighboring countries and from Dubai and the Middle East. India’s financial and cultural affinity and love affair with gold will not end due to this obstacle and they will continue to sensibly buy the precious metals.

Whether the gold prices will continue to rise or further plunge will be witnessed in the coming days. Watch this space for updates!