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Gold price hits all-time high on European debt crisis and US QE

The price of gold for immediate delivery hit a record $1,578.55 on Wednesday evening. Gold is priced in dollars, but it also hit a record in sterling, the euro and the South African Rand.

The following chart is from Nick Laird.  In the last 10 years the U.S. dollar has lost almost 85% of its purchasing power vs. gold.  You could probably run a similar chart for any of the world’s fiat currencies.

Fed chief Ben Bernanke’s twice-a-year testimony on Capitol Hill.

“The possibility remains that the recent economic weakness may prove more persistent than expected and that deflationary risks might re-emerge, implying a need for additional policy support,” Ben Bernanke said.

Translation: If our own rosy projections don’t pan out, we’ll mainline more QE heroin to prop up stock prices. We’ve got your back, Wall Street.

Bernanke Fights Ron Paul In Congress: Gold Isn’t Money

“Gold’s at about $1,580 [an ounce] this morning, what do you think of the price of gold?” asked Rep. Paul.  A stern-faced Bernanke responded people bought it for protection and was once again cut-off, with Ron Paul once again on the offensive.

“Is gold money?” he asked.  Clearly bothered, Bernanke told the representative, “No. It’s a precious metal.”

 A new batch of confetti in the works:

Bernanke: Fed May Launch New Round of Stimulus

Federal Reserve Chairman Ben Bernanke told Congress Wednesday that a new stimulus program is in the works that will entail additional asset purchases, the clearest indication yet that the central bank is contemplating another round of monetary easing.

After Bernanke’s remarks, gold shot up to a new record high today. The spot price hit $1,588 midmorning and has pulled back only a couple of dollars since.

Silver is up even more, posting a one-day gain of 5.5%, to $38.17.  It is well above its 50-day moving average now and the tech funds should dive in and power silver up to and through $40 – unless JPMorgan decides to defend that level.

The dollar index, which pushed past 76 only two days ago on the latest euro-scare, is back to 75.