PRECIOUS-Gold erases gains after Fed Bernanke comments

Gold market update for Wednesday, May 22. Starting the day higher and breaking the $1400, gold has retreated on comments from Fed chairman Ben S. Bernanke. In the much anticipated remarks, Bernanke commented that the Fed will need to “…see further signs the economy was gaining traction before removing current measures.” Gold has been seen by many as an investment to hedge inflation. But despite all the monetary easing going on in the world, inflation just isn’t as big an issue explains Credit Suisse analyst Karim Cherif. Physical demand though remains strong, but is waning somewhat in India due to tighter import restrictions. Read more…