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.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Andrew Sachais' focus is on analyzing markets with global macro-based strategies. Sachais is a chief investment strategist and portfolio manager at the start-up fund, Satch Kapital Investments. The fund uses ETF's traded on the U.S. stock market to gain exposure to both domestic and foreign assets. His strategy takes into consideration global equity, commodity, currency and debt markets. Sachais is a senior at Georgetown University earning a degree in Economics.

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