Few trades have performed as well as gold under Bernanke.
On the day of his appointment to Fed Chairman — Feb 1, 2006 — gold rose 45 cents to $569/oz. If only they had known that every dip in gold prices would be met by dovish rhetoric from the most dovish Fed chairman of all time.
Well, every dip until June of this year when Bernanke finally gave up the ghost and put a ‘best before’ date on the printing presses. Gold fell below $1200 and the bulls were scared.
Throughout the summer, however, gold recovered, hitting $1425 near the end of August. Bernanke still won’t taper, they said, the economy is too weak.
Now, the optimism has now faded and gold along with it. Even with the economy muddling along, the Fed hasn’t backtracked on the taper and gold is down $100 in the past three weeks.
It’s not ‘game over’ yet for the bulls. Bernanke is still the Fed chairman and the good news is that his dovish protege Yellen will assuredly take his place. C’mon Ben, be a dove one more time for the gold bulls.
I’m not even sure what’s going on here but it’s hilarious
