QUANTITATIVE EASING

Britain will avoid recession and Bank of England will not need to inject any more stimulus but the recovery will be weak, says British Chambers of Commerce.

To talk bullish on gold looks like a risky proposition at the moment -- last Wednesday, gold saw one of the most brutal routs in a year when it tumbled five percent. It indeed recovered 1.5 percent the next day, broadly symbolizing the roller-coaster ride of bullion in recent times.

U.S. stocks advanced Thursday buoyed by a strong weekly jobless claims numbers and solid monthly sales from retailers. Meanwhile, European markets were lifted by a well-received Spanish auction and news that Greece is one step closer to winning a €130 billion ($173.15 billion) bailout.

Most Asian stocks declined Thursday as the lack of explicit hints about further quantitative easing from Fed Chairman Ben Bernanke disappointed investors.

The Nasdaq composite index crossed 3000 for the first time in more than a decade but finished in red following the testimony from Federal Reserve chairman Ben Bernanke which checked market expectations of more monetary easing.

Spot gold rose more than 1 percent Thursday, recovering from its biggest fall in more than three years in the previous session when U.S. Federal Reserve Chairman Ben Bernanke failed to signal further monetary easing.

Precious metals and the broader market headed in opposite directions Wednesday, with gold taking its biggest single-day dive in two-and-a-half months, as a February full of good economic news helped drive the price of precious metals down on the day and month as a whole.

China's 11th National People's Congress (NPC), the Chinese Parliament and top legislative body, will convene its fifth annual meeting Monday to set such key 2012 economic objectives as a lower target for economic growth, while keeping inflation steady.

Gold fell 3 percent on Wednesday for its biggest one-day drop in 2-1/2 months, as a dollar rally following U.S. Federal Reserve Chairman Ben Bernanke's comment on an encouraging job recovery prompted funds to heavily unwind bullish bets.

The U.S. economy grew a bit faster than initially thought in the fourth quarter on slightly firmer consumer and business spending, which could help to allay fears of a sharp slowdown in growth in early 2012.

Federal Reserve Bank of San Francisco President John Williams defends the Fed's aggressive monetary policy, citing continuing reverberations from the housing crash.

The Federal Reserve should only embark on a third round of large-scale bond purchases if the U.S. economy deteriorates and inflation drops, and we are not there yet, a top Fed official said on Friday.

U.S. central bank officials have good reason to be skeptical about the strength of the economy: excessive optimism has caught them flat-footed before.

Japan reported a record-high balance of trade deficit in January as last year's tsunami combined with floods in Thailand, the Eurozone's sovereign debt crisis, a slowing Chinese market and a soaring yen to leave the world's third-largest economy with its first trade deficit since the last century.

Gold fell on Friday as investors took profits after an initial rally driven by growing confidence that Greece was edging closer toward winning a new rescue package.

The U.S. consumer price index rose less than forecast in January as prices for household energy and used automobiles cooled, supporting the Federal Reserve's view that inflation will remain in check.

Minutes of the Federal Reserve Board's January meeting confirm that current board governors are divided on engaging in another round of bond purchasing, but they also portrayed the central bank leaders as agreed on the propriety of ultra-low interest rates.

The U.S. Federal Reserve should do all it can to reduce very high unemployment and bring inflation back up to more desirable levels, a top Fed official said on Monday.

A number of top Federal Reserve officials likely saw a need for additional monetary easing at the central bank's meeting last month, although there are few signals the central bank will move soon.

The UK economy is under significant pressure in the shadow of uncertainty cast by the eurozone debt crisis which is resulting in its losing the momentum of recovery.

The pick-up in jobs has caught the eye of two top Federal Reserve officials who said on Wednesday that continued improvement in the beleaguered labor market dampens prospects for more economic stimulus measures from the central bank.