So they didn't taper, why isn't gold shooting up?

[Potemkin]

Hey, the Fed didn't taper, but should that have pushed gold higher?

I remember all those predictions about 2,000 $ gold that never came true.
The way gold is moving, it's better to keep my hands off...

Last time I bought at around 1,800 $. I was nuts...

Now it's be a wonder if it reaches 1,500 $... Even that would be a loss.

Why isn't gold moving up stronger? I see more of a horizontal trading thing going on. I was expecting a stronger reaction to Uncle Ben's "no taper" stuff...

 

[ancona]

Potemkin,
There are still a lot of shorts that need to unwind. BAC recently announced they would be exiting their short PM position and returning to a net long exposure. In addition, we had a triple expiry last week and have one this week in PM's. I expect some wild stuff before and including Wednesday.

 

[pmbug]

... I was expecting a stronger reaction to Uncle Ben's "no taper" stuff...

Fed peeps are talking the markets down with expectations of imminent tapering.

 

[rblong2us]

I remember all those predictions about 2,000 $ gold that never came true.
The way gold is moving, it's better to keep my hands off...

Last time I bought at around 1,800 $. I was nuts...

Now it's be a wonder if it reaches 1,500 $... Even that would be a loss.

With you on this Pk

Sold house in Aug 2010 and parked my half of the proceeds in gold.

Its proving to be a good test of my ability to remain detached ....

ooommmmmm

 

[Aubuy]

It depends on what gold is to the world. I read somewhere that gold is behaving more like a currency and less like a commodity, so it makes some kind of sense to see it operating in a range like most other currencies. There are much smarter people than me on this site that can probably explain it better than I can, but if it's true it's not going to generally pay off the way some people think, unless something really dramatic happens, and then all bets are off.

 

[DSAbug]

Potemkin...

Weren't you concerned about the taper and that it was going to cause gold to collapse?? Well.. Didn't happen did it?

Stop focusing on "the news" because if you are buying and selling based on it, you will lose money. If you listened to CNBC since 2000 you would have missed the entire gold move.

We've been talking about QE for 5 years now and the economy isn't doing better. At this point, QE or no QE, the damage is done. There is simply no possible way this ends poorly for gold in the long run.

 

[ancona]

The FED is cornered now, and they know they can never stop buying paper, because they are the market now.

 

[benjamen]

The FED is cornered now, and they know they can never stop buying paper, because they are the market now.

Two possible choices for the FED, neither is bad for gold:
http://www.mineweb.com/mineweb/content/en/mineweb-gold-analysis?oid=205833&sn=Detail

Prior countries that tried quantitative easing:
http://www.activistpost.com/2013/09/quantitative-easing-worked-for-weimar.html