Gold should head to $1391 resistance, then we'll see. My opinion is Fed has played everyone with taper talk - they just didn't want the general stock market to get overbought on QE3 like they did on 1 and 2. The whole point of difference with QE3 was it was not a fixed one off amount like the others, it's a variable, monthly amount. If and when US unemployment comes down to the target, it doesn't mean QE ends, it just means they can vary the monthly mortgage backed securities purchase. Or taper if you like. Silly word, I thought it was a large South American beast with a stripe. But it by no means equates to QE is over, it can go on indefinitely and the really BIG mistake Mr market is making is to believe that o ce taper begins, it will continue to reduce - WRONG - it can just as quickly be increased to current or even greater levels for all anyone knows, it entirely depends on circumstances, particularly US unemployment and does anyone seriously think that will come down in a straight line?
PRU Price at posting:
75.5¢ Sentiment: Buy Disclosure: Held
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