While most commodities fell today, gold was hit the hardest. It is possible that the Chairman was trying to talk down the commodity complex. While QE3 is not imminent, it remains a distinct possibility should the economy weaken later in the year.
For the day
MXI-I-Shares Global materials was down approximately 1.6%
GDX-Gold Miners down 3.37%
IYR-I-Shares REITs only down .13%
DBC-Deutsche Bank Broad based commodity down .37%
IAU-Spot Gold ETF-Down 5.34%
The safe haven or alternative currency gold was in part elevated on the perception of continued easing by the Fed. With reasonably strong economic numbers recently the Fed is on hold for now.
Commodities that are growth bets such as materials are down as well on possible concerns that without the Fed's largess, growth will eventually slow.
Today's action demonstrates the need to have a real/return hard asset firm view and to identify those portions of your portfolio that are most vulnerable to the views and policies of central bankers.
Tom Koehler, CFA