Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways To Play: Traders Get Gold Rush


Strengthen your portfolio in good times and bad.

Bloomberg reports gold surged the most in 16 months and silver gained the most in two weeks a day after the FOMC announcement.

Yesterday the Federal Reserve acknowledged increasing inflationary expectations and left the benchmark overnight rate at 2%. But traders believing policy makers wouldn't rush to raise rates and curb inflation, bid up commodity prices. Gold futures surged $31.10, or 3.5% to $913.40 an ounce in New York a day after the Fed left interest rates at 2%.

Further, the Reuters/Jefferies CRB Index of 19 raw materials rose to a record today marking a 29% year-to-date gain.

Analysts believe the economy is too weak for the Fed to raise rates in the near future.

Fed funds futures now show a 29% chance the Fed will keep rates at 2% in September. This compared with just a 2% chance a week ago.

For more, see Professor Lewis' Golden Moment of Clarity.

From the Bull Pen: Bulls can consider a variety of the gold miners. Amongst other Professor Lewis has mentioned, Gold Fields (GFI), Newmont Mining (NEM), and ASA (ASA).

From the Bear Cave: Those believing the dollar will weaken further can consider playing the dollar bearish fund (UDN). This ETF replicates being short the U.S. dollar against the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona, and Swiss Franc.
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos