Cramer: Don't Trade Gold on Bernanke's Comments
Be careful with gold, Cramer said Wednesday, adding that investors shouldn't trade the precious metal on comments from U.S. Federal Reserve Chairman Ben Bernanke on its interest rate decision.
Gold rose for a second day on Wednesday, profiting from a weaker dollar, which came under pressure ahead of the Fed's decision on interest rates. After a two-day meeting, the Fed's policy-setting Federal Open Market Committee said it intends to complete its $600 billion bond buying program in June, as scheduled. It signaled it's in no rush to scale back the program, which is intended to prop-up the U.S. economy and added the run-up in commodity prices should soon be fleeting. Bernanke will give the central bank's first post-decision news conference later Wednesday.
Gold's pop is nothing more than a "knee-jerk trade," Cramer said. The "Mad Money" host said he doesn't think the Fed is being tough enough. When it comes to gold, he thinks few people are looking at supply and demand. There is a lot less supply than demand, he explained. Even so, he thinks gold is simply too volatile to trade off Bernanke's comments.
Meanwhile, Cramer addressed recent earnings, including Boeing's . The aircraft maker beat earnings estimates, but revenue disappointed analysts. It also reaffirmed its full-year forecast. Cramer thinks the airline industry is at the beginning of a "super-cycle," which he thinks Boeing will profit from. He also thinks BA is a play on higher oil prices, as he said planes use less energy.
Amazon.com reported disappointing first-quarter earnings after Tuesday's closing bell. The Internet retailer raised its guidance for the current quarter. Cramer remains bullish on the Seattle-based company. Along with Apple , he thinks Amazon is one of the "fastest growing, large-cap" companies on earth thanks to its accelerating revenue growth.
Reuters contributed to this report
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