The SPDR Gold Shares(NYSE:GLD) are surging to new all time highs again trading higher by $1.06 to $129.00. The move higher in the precious metal comes as the U.S. Dollar Index trades down to multi-month lows. Gold is now telling us that the Federal Reserve is accomplishing their goal of inflating the markets higher.
The question that many traders and investors are asking now is what type of asset bubble will this create? Just remember it did not take very long to create the housing and credit bubble in the early part of the decade when former Federal Reserve Bank Chairman Alan Greenspan helped inflate the markets. In 2001, gold was trading below $300 an ounce. Today it is trading at a new all time high at $1321.00 and ounce. As long as they continue with the same Keynesian policy gold should go to the moon.
