Gold is a common hedge during periods of high volatility and risk-averse environments. This pair has traded in a tight range since late May. As stimulus came into question, volatility became present for the first time in 2013.
If Bernanke fails to reassure investors on Wednesday, equities worldwide will certainly sell off, and gold will come into demand. This pair will subsequently trend lower. At the time of publication the author had no position in any of the stocks mentioned.Follow @AndrewSachaisThis article is commentary by an independent contributor, separate from TheStreet's regular news coverage.