Precious Metals are Reclaiming Their Shine

It wasn’t that long ago that gold bears were sticking a fork in the yellow metal. And they had several reasons. The $300+ per ounce price drop was not attracting tons of bargain-hunters. What’s more, the SPDR Gold Trust (GLD) had fallen below its 200-day trendline for the first time since 2009.

That said, precious metals have reclaimed their luster in 2012. So much so, in fact, GLD is back above its long-term moving average.

How can this be? Wasn’t the rise of the dollar agaisnt the euro slamming all commodities, including precious metals? Not when Bernanke’s Fed assures the markets that near-zero rates will not only be set for 2012, not only for 2013, but all the way out until 2014!

Granted, the stock and commodity markets appear to savor the “loose dollar/loose Fed” policy. After all, low interest rates typically support gold prices. Nevertheless, the gold bears still suggest that the uptick in precious metals is only temporary.

Gold & Silver: Will Prolonged ‘Loose Money’ Policy By Fed Spur Rally? – Murray Coleman, Barron’s
The End Of Mutual Funds Is Coming – Joshua Brown, CNN Money
A “Worst-To-First” ETF Trade Idea – Donald Pendergast, Money Show
The 10 Most Profitable ETFs In The World – Jared Cummans, ETFdb