pog looking dodgy, page-32

I don't want to hog the forum, but I think I remember how it works.

When the fed tapers, ie reduces/stops buying US treasury bonds on the open market, the remaining bond buyers will expect a higher interest rate so the interest rate will rise. This encourages invesors to move out of other solid investments such as commodities and back into bonds, which is traditionally the safest investment.

(Of course this will hit the US government hard because it will be paying higher interest on it's debt, and it already has too much debt. That's why some are arguing that the fed cannot do a full taper anytime soon. So gold could bounce back again. With all the news reports and shills around it's going to get bumpy from here on.)