[heading]Gold’s Best Rally Since 2011[/heading]
Hedge funds guessed right when they bet on a gold rally before prices went onto to their biggest two-week gain in 20 months as the Federal Reserve Chairman Ben S. Bernanke speculated that a slowing of quantitative easing appeared to be on the horizon.
An 11 percent rebound mean gold reached a 34-month low on June 28 as the declines spurred physical demand. Japan’s biggest gold retailer, in fact, said on July 18 that its sales tripled in the second quarter from the previous three months.
According to Ben Bernanke, gold prices have fallen this year because investors are less stressed about armageddon and the perceived need for “disaster insurance.” Gold had entered into a bear market in April.
Having surged 6.7 percent in just two weeks, gold had had its been two week stint since November 2011. Bernanke said it’s “way too early to make any judgment” as to whether the Fed will start winding down its stimulus program in September.
But, now with gold at a near one month high and oil near the top of its trading range around $107, one must wonder if it is now time for the market to be flushed?
Recent trading says yes. That is exactly what time it is.