So the story of the day is this: Bernanke came out and sounded dovish this evening, for reasons which we've explained here.
Markets are rallying, interest rates are down, the dollar is falling, and
From Kitco:
Of course, gold has been getting massacred for the last couple of months, so it's coming off of a weak spot, but still a nice night for gold owners.
In a note out tonight, Mike O'Rourke of JonesTrading argues that gold is now in the sweet spot, and that Bernanke has lost any tapering credibility:
We don’t believe the Chairman’s intentions have changed. Regardless, the Chairman’s credibility is once again damaged. If the Dollar breakdown continues, it will be a sign that the market believes the Chairman has again lost control over policy. The asset clearly in the best position in such an environment is Gold. After such a notable correction in the past 9 months, the precious metal once again becomes a very attractive global asset if monetary policy in the largest economy of the world spins out of control.