Exchange traded funds that invest in U.S. stocks and precious metals jumped Wednesday after Federal Reserve Chairman Ben Bernanke said the central bank stands ready to provide more support to financial markets if the economy worsens.

Bernanke’s comments in testimony before Congress lit a fire under gold and silver ETFs as the dollar fell sharply. The Fed chief said the central bank is prepared to respond if economic conditions warrant a change in monetary policy.

“The possibility remains that the recent weakness may prove more persistent than expected and that deflationary risks might reemerge, implying additional policy support,” Bernanke said.

Investors are worried the U.S. economy is mired in a soft patch after June’s horrible nonfarm payrolls report.

Gold ETFs soared Wednesday as the prospect of more Fed stimulus and continued low rates pushed the dollar lower. Stocks also moved higher as the so-called inflation trade seemed to rule the day.

SPDR Gold Shares (NYSEArca: GLD) was up nearly 2% as futures rose to a new record. [Gold ETFs Look for Breakout to New Highs]

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