Does the recent upwards movement in the gold price on the suggestion that Fed tapering may be imminent constitute a major shift in gold market sentiment?
"But although gold did rise on the latest Fed data, and the suggestion that a taper decision might be made as early as next week, which is certainly a change in track for gold compared with previous such suggestions on tapering, the metal effectively still remains in a downtrend – and some of yesterday’s gains are already coming back down in the markets today. The gold price will need a return to higher levels, and sustain these, if it is to shake off the bears, and the bank analysts predicting lower prices still may yet be proved right. But if our reading of overall trends in the market is correct, gold will again have its place in the sun, but timing remains uncertain. If the Fed does announce a limited taper next week (which we feel is probably unlikely, but we could be wrong) then the impact on the gold price and the S&P and Dow will be interesting to see and could give a good guide as to where gold and the general stock markets are headed next".
Source: Miniweb, Lawrence Williams
"But although gold did rise on the latest Fed data, and the suggestion that a taper decision might be made as early as next week, which is certainly a change in track for gold compared with previous such suggestions on tapering, the metal effectively still remains in a downtrend – and some of yesterday’s gains are already coming back down in the markets today. The gold price will need a return to higher levels, and sustain these, if it is to shake off the bears, and the bank analysts predicting lower prices still may yet be proved right. But if our reading of overall trends in the market is correct, gold will again have its place in the sun, but timing remains uncertain. If the Fed does announce a limited taper next week (which we feel is probably unlikely, but we could be wrong) then the impact on the gold price and the S&P and Dow will be interesting to see and could give a good guide as to where gold and the general stock markets are headed next".
Source: Miniweb, Lawrence Williams
