The price of gold surged today after the FOMC announced it would keep interest rates near historical lows into 2014. The policy can be viewed as another round of quantitative easing by some. PIMCO's Bill Gross referred to the move as QE 2.5.
Whatever you make of it, the more important point is that the market liked the comments as did investors in precious metals. Gold rallied back to the $1700 area and the SPDR Gold ETF ($GLD) surged to the best level in over a month - up over 2%.
The gold ETF continues to be my largest holding for clients and as I stated when the metal pulled back in December - Do not give up on it! And thankfully I did not and hopefully you did not either.
There may be a bit of resistance for $GLD at the $165.50 area, which is the top of the gap formed in December, but longer term I like the ETF to retest the high of $185/share.
Market expert and TV personality Matt McCall blogs about what is really moving the markets. He will emphasize Exchange-Traded Funds (ETFs) and individual stocks throughout the trading day.
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