by Jan Skoyles, TheRealAsset.co.uk
Should tapering be announced next week, gold will no doubt fall but to what extent is up for debate. Many analysts and commentators, including this one, believe that the majority of the tapering has already been priced into the gold price. Consider, for all the tapering talk yesterday, gold continued to make small but significant gains.
In the usual manner the Fed has been rolling out the occasional Fed President to provide some ‘useful’ insight. Yesterday it was the turn of St Louis Fed President, James Bullard. He stated that the odds of seeing a ‘Dectaper’ are now higher following the improving job market data, as seen in Friday’s non-farm payroll data release.
He argued, however, that the cut in QE should be modest, “a small taper might recognize labour-market improvement while still providing the committee the opportunity to carefully monitor inflation during the first half of 2014.”
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