In his speech at Jackson Hole, Bernanke failed to increase the probability of another round of quantitative easing, though his language did not rule it out. This is generally negative for the gold trade as gold bulls were hoping for some form of dollar-debasing, inflation-producing program that would continue the metal’s historic rise. Standard & Poor’s chief technical strategist now puts gold prices into a correction that will take it to around $1,500 or a drop of -16.5% from current prices.
While I would not normally step in front of a speeding train, I will on occasion jump in front of the unstoppable asset. In a recent article presenting ways to protect your portfolio in volatile markets, I warned investors of using gold as a safe haven investment. Granted, many investors are moving into the asset as a store of value and consumer demand in emerging markets is increasing, but the number of speculators and ‘arm-chair’ investors has also increased greatly... Read More at SeekingAlpha
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