by Jan Skoyles, TheRealAsset.co.uk
In yesterday’s Social Gold Mine we featured a couple of tweets regarding India’s ongoing currency wars; the rupee versus gold. Despite the rupee sitting at an all-time low against the dollar, for the time being it is officially winning the war. Thanks to the weak currency the price of gold bullion is at a record high and August’s gold imports fell by 90% from the previous year.
Now that tensions over Syria appear to have calmed, gold appears almost entirely focussed on the FOMC meeting next week and the subsequent decision. Consensus remains that the 17-18 September meeting will result in an announcement that the Fed will reduce the $85billion monthly purchases by around $10-$15 billion.
Goldman Sachs, not really known for their record gold price predictions, said this morning that gold’s drop will extend into 2014 when the Fed taper asset purchases.
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