Commodities: Gains on Fed announcement

On Wednesday 4/27, Federal Reserve Chairman Ben Bernanke made a public statement that effectively said the following: we're done buying bonds, but we don't expect interest rates to drastically change. With low interest rates comes the possibility/probability of inflation -- with this inflationary expectation, it's no surprise that commodities prices ascended. AGQ, an ETF with a bullish stance on the value of silver, saw a single day gain of over 13.5% on 4/27. GLD, a similar ETF linked positively to the value of gold, saw a more tempered (but still positive) gain of ~2% on Wednesday the 27th. The value of these instruments (and their underlying commodities) should be interesting to follow in the coming months, especially as QE2 comes to a close at the end of the second quarter.