by Dan Norcini, Gold Silver Worlds:
Gold has now surrendered half of the gains that it put on as a result of Wednesday’s FOMC announcement that the TAPERING was on hold. It is currently trading at 1337 as I type these comments.
While the US equity markets are a bit weaker, the S&P 500 is still sitting firmly above the 1700 level. Interest rates on the Ten Year are near 2.75% while the grain markets are imploding lower and crude oil continues to drop off its best post-FOMC announcement levels.
In short, we are pretty much back to where we were prior to the FOMC. Why do I say this? Simple – this morning Fed governor Bullard managed to do what many in the Fed have been doing since May of this year, namely, jawboning the markets and setting them up for another possibility of tapering later this year. What has it been, 2 days since we got that FOMC press release and here we already are talking about starting the Tapering once again. Good grief! This is like some sort of sick version of the movie “GroundHog Day”.
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