by Alasdair Macleod, Gold Money:
The event of the week was the FOMC meeting on Wednesday, which actually said nothing of any substance. This was hardly surprising, given the impending change of chairmanship; however it triggered a rally in the US dollar as dollar bears rushed to close, and gold fell $20 from $1355 to $1335 in less than half an hour.
The price continued to drift lower yesterday (Thursday) closing at $1323. The consensus now appears to expect tapering following the March FOMC meeting. However, for that to happen, the economy will have to recover, unemployment will have to fall and the Fed will have to revise its forward guidance on interest rates. Therefore, those that expect tapering must be reflecting optimism about economic prospects.
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