Gold's Time To Shine Is Not Over (GLD, GDX)

After Friday's big sell-off and this morning looking like a repeat of the dismal performance, the anti-Gold investors were abuzz with comments like the "the gold bubble is popping" and "the gold trade is over." But after a little reassurance from Federal Reserve Chairman Ben Bernanke that the easy money policy will remain for an "extended period", Gold rallied hard into the New York close as the dollar weakened.

Gold for December delivery fell $5.40, or 0.5%, to end at $1,163.40 after trading as low as $1,136.30 before Bernanke's comments.

Bernanke tried to quell inflation fears though, which kept a lid on gold. Bernanke said the Fed is committed to keeping inflation low and inflation appears likely to remain subdued for some time.

ETF SPDR Gold Shares (NYSE: GLD) is down 0.5% to $113.18 after trading down to $111.44 earlier. Market Vectors Gold Miners ETF (NYSE: GDX) is down 2.35% to $49.50 after trading down to $48.80 earlier.

Today's action in gold shows investors that the trade is not over for a long shot. Until the Fed shows that it has the courage to raise interest rates, the positive bias in gold will likely continue.

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