Gold: Bernanke Says “The Trend is Your Friend”
Yesterday, Federal Reserve Chairman Ben Bernanke gave a speech at the Economic Club of New York during which he declared interest rates would remain low for “an extended period.” Those who have been turning their “rising rates” theory into hard bets got crushed on the heels of Bazooka Bens remarks.
With the dollar losing more value and commodities attracting more investors, we take Bernanke’s comments to imply that “The trend is your friend.” By the looks at the chart of Gold ETF (GLD) below, inertia is in control:
Disclosure: GLD was the Featured Trade in the October issue of the Wall St. Cheat Sheet Premium Newsletter.
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