The largest gold ETF, SPDR Gold Shares (NYSEArca: GLD), rose 0.8% in afternoon trading Tuesday.
“Right now, the Fed is looking at inadequate economic activity, a still-depressed housing market, unacceptable labor market conditions and consumer-price inflation below the Fed’s target range,” Nichols said. “At the same time, it is worried that Europe’s intractable sovereign debt and banking crisis will damage the American economy and put U.S. banks and financial markets at risk (despite the recent 100 billion euro bailout of Spain’s banking system). And it fears U.S. fiscal policy will become even more restrictive as the automatic year-end tax increases and spending cuts take hold.”
SPDR Gold Shares
Full disclosure: Tom Lydon’s clients own GLD.