Proof Bernanke can no longer move the gold price

Gold was little changed on Wednesday – changing hands for $1,713 an ounce in late trade in New York  – despite the momentous announcement by the chairman of the Federal Reserve fundamentally changing US monetary policy.

Ben Bernanke said that the central bank will now target specific employment (6.5%)  and inflation numbers (2.5%) when deciding on policy, a huge change.

But what  should have boosted the price of gold is that Fed's bond-buying program has been upped by $45 billion, bringing total asset purchases to an eye-watering $85 billion a month. And that it expects rates will be near zero until mid-2015.

In the past any mention or even a hint of increased or extended quantitative easing would send investors piling into gold. Anything to the contrary and they would  run for the exits.

Not today.

After small swings up and down during Bernanke's comments, gold quickly settled back in its low $1,700s trading range.

The Fed's flooding of markets with cheap money under QE1 kicked off on 16 December 2008. On 15 December 2008 an ounce of gold cost $837.50.

Granted, gold has doubled thanks to the Fed's money-printing.

But if you look at today's lackluster reaction from gold it seems the Fed's actions will no longer move gold any higher.