Fed Kills Gold Trade, but Doesn't Bury It
NEW YORK (TheStreet) -- The Federal Reserve Open Market Committee made it clear on Tuesday that the central bank isn't about to rush to the dollar printing press with another round of quantitative easing, but there is a difference between killing softly and burying the gold trade.
Since the central bank easy money policy was put in place in response to the financial crash, volatility has typified the gold trade. However, in giving the market no reason to believe QE3 is around the corner, the Fed didn't change course. Speculative traders keeping the gold bubble afloat simply expected too much, and too soon, in terms of Fed action.
Consider that just last week when Federal Reserve Chairman Ben Bernanke spoke at an industry conference the markets interpreted his benign words as a wink and a nod that QE3 was on the way. What a difference a week makes. When the commodities trade, specifically, is positioned on a prayer that central bank policy creates inflation that is a danger, said Jon Nadler, senior metals analyst at Kitco.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV