Monday, November 18, 2013

Yellen Fed to be similar to Bernanke led Fed

Gold prices have declined for much of 2013 amid fears the Fed would curtail its monthly bond purchases, removing a long-running source of support from the gold market. Some investors feared the Fed's unconventional stimulus efforts would spark higher inflation and weaken the dollar, and purchased gold as a hedge.

"It is reasonable to expect that the Fed, under her leadership, shall tread the same path that the Bernanke Fed has trod over the course of the past five years," said Dennis Gartman, investor and publisher of The Gartman Letter.

Mr. Gartman said that "true believers" in gold perceive "that Dr. Yellen's term in office at the Fed shall be their salvation."