The moves by the U.S. Federal Reserve, the European Central Bank, the Bank of Japan and other central banks of the world serve notice that they are in unison on making sure the European Union debt crisis does not spread into a worldwide financial contagion. Earlier in the day China announced it is dropping its reserve requirement ratio for banks by 0.5%. That in effect eases monetary policy and is an overt signal from China that it wants its economy to grow and it will accept more commodity imports to achieve its better economic growth. The coordinated central bank move and the China move
Are very significantly bullish for commodity markets, including the precious metals.
