by Adam Hamilton, Gold Seek:
The Federal Reserve shocked the financial world this week, defying universal expectations. It failed to start reducing the pace of its third quantitative-easing campaign’s debt monetizations, delaying the long-anticipated QE3 taper indefinitely. This surprise ignited sharp moves in nearly all major markets, but gold’s was certainly the most impressive. It rocketed higher on the Fed’s startling new paradigm shift.
All year long, gold has been plagued by fears of the Fed tapering QE3. Starting with the January 3rd release of the minutes from the December FOMC meeting (where QE3 was more than doubled to include direct Treasury monetizations), QE3-tapering fears have dominated the gold markets. Futures traders in particular have been pathologically obsessed with the QE3 taper, ignoring everything else that affects gold.
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