Investors have used the largest gold ETF to position for higher prices on expectations central banks will unveil further easing policies. SPDR Gold Shares (NYSEArca: GLD) has seen $2 billion move in the door to lead inflows among all ETFs.
Federal Reserve Chairman Ben Bernanke’s recent Jackson Hole speech provided a platform for continued monetary accommodation, analysts said. The Fed chief said he’s still worried about lackluster progress in the labor market. [Gold and Silver ETFs Rally on Fed, ECB]
“Bernanke’s speech seems to indicate that the recent uptick is not substantial enough to persuade the Fed to hold off on quantitative easing,” said Sterne Agee analyst Michael Dudas.
The Fed meets next week and investors are looking for the central bank to extend its low-rate pledge, or buy bonds to keep rates depressed.