Gold Market Fears Fed Not Doing Enough To Fend Off Inflation

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Gold futures were trading sharply higher by $25.20 at $1202 in Thursday's session. The inaction by the Fed to raise rates has convinced investors that the Fed is not taking the proper steps to fend off any upcoming inflation.

In Wednesday's session, gold spiked to $1188.80, but fell back to end the session at $1176.80. However, buyers came in off the open and instigated a nearly $8 higher open. After a brief retreat to $1183.10, the rally resumed.

So far, it has found resistance ahead of its June 1 ($1204.90), reaching $1203.90, but is still maintaining above the key technical level of $1200.

The SPDR Gold Trust (ETF) (NYSE: GLD) traded at $115.23, up $1.38.

The Market Vectors Gold Miners ETF (NYSE: GDX) traded at $19.02, up $0.16.