Silver futures rose on Tuesday, after Federal Reserve chairman Benjamin Bernanke said that the current inflation rate may be too low, and that the Fed may buy more debt if unemployment fails to improve.
After a meeting of the Federal Open Market Committee, Bernanke said that inflation is at "levels somewhat below those the committee judges most consistent, over the longer run, with its mandate to promote maximum employment and price stability."
However, the central bank did not commit to using quantitative easing – perhaps attempting to keep its last and most dramatic tactic in reserve.
The recession officially ended 15 months ago, yet the broader economy shows few signs of improvement, particularly in the labor markets. The Fed also renewed its commitment to exceptionally low interest rates, which have made borrowing extremely cheap for the major banks, but don't seem to have stimulated much consumer demand or new investment.
Comex silver futures for December delivery rose 13.7 cents to $20.94 per troy ounce. The last time the white metal reached this level was June of 2008, just months before the catastrophic stock market meltdown.
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