This is why you can't trade the news...

Market Club (Trade Triangles) just did a short video on why Gold is not sky-rocketing yet, even though we've closed above $1000 a few times now.

Now, here's a blurb from a piece that Reuters did today on the FED meeting:

...Policy makers said inflation would remain subdued for some time with substantial slack in the economy dampening cost pressures, and with long-term inflation expectations stable...

Does this mean I am going to sell my Gold calls now, and take more profit (thus leaving my short naked?) NOPE. But, there is definitely a question as to how much inflation we're actually going to have.

On the other hand, I do the food shopping for the house, and when a 12 oz. box of Frosted Flakes is selling for almost $5, you have to wonder if we already are having inflation! Postage stamps, milk, pickles etc. are all very pricey...so it really does make you raise your eyebrows as to what the FED considers to be non-inflationary.