how many ounces, page-73

“Many economists expect the central bank to begin unwinding its $85 billion-a-month bond-buying program, which has been supportive of gold prices.”
That’s a typical piece of reporting to explain why gold has been weak since around April and many use it as a reason why gold will fall further.
The problem with this argument is this part; “its $85 billion-a-month bond-buying program, which has been supportive of gold prices”
Since when was the $85bill program supportive for gold? Only for around 2 weeks and it was only barely supportive for even that brief period as it moved from the mid 1700’s to the high 1700’s. Then the POG started falling very soon after that $85bill was announced. With hindsight, QE3 was probably factored in before it was announced as gold was climbing strongly up to the news. Now we have had very weak gold prices ever since the $85bill was announced (other than the latest rally). POG is at 1330 compared to around $1750 when QE3 was announced. This is why I think it’s all priced in again (tapering) and why there is a potential for gold to “surprise us” yet again, this time by climbing not long after any news of tapering instead of falling. Anyone buying gold stocks on the QE3 news and holding would have done poorly. Anyone selling and staying out on any news of tapering might do equally poorly.
One thing you can’t rely on and that’s the media’s reporting or understanding of the gold market.

Also notice the broadening rising wedge on the HUI. These are generally regarded as reversal patterns with reportedly around 75% accuracy- bearish after bull markets and bullish after bear markets. Most of the info on the web talks about these after bull markets rather than after bear markets possibly because they are more common following bull markets.
I guess we can expect plenty more volatility into the FOMC meeting but Summers pulling out might help gold/HUI tonight.
Most of our producers are up 3-6%.

http://www.thegreedytrader.com/BroadRisingWedgeChartPattern.aspx