TIMELINE: The gold price and the Fed’s rocky relationship

When US Federal Reserve Chairman Ben Bernanke testified in front of the US Congress in July last year he famously said he “doesn’t pretend to understand gold prices” and “nobody does”.

During his successor Janet Yellen’s confirmation hearings she echoed Bernanke’s befuddlement about the gold price adding that she doesn’t “think anybody has a very good model of what makes gold prices go up or down.”

While the two chairs who flooded financial markets with trillions of dollars plead ignorance about the gold price, bugs who saw the flood of easy money coming can enjoy a 40% rise in the value of their hard asset investment since the launch of quantitative easing in December 2008.

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