bring on the taper

The overhang of all the talk re tapering is hurting gold, when in imo the reality will be that tapering will be a positive for gold & the opposite for equities. I don't think the market believes the FED is going to taper any time soon & this is why equities keep travelling north & gold is being punished. If QE was a positive for gold, wouldn't it still be going up? Commodities were one of the initial beneficiaries from QE, with China still consuming & gold hedge books still being closed out, speculative money from QE & hedge funds & the like was pouring into commodities. The FED always stated they wanted QE & low interest rates to support the equity markets & that they saw this is a way to feed stimulus into the economy (rightly or wrongly). In 2011 the last hedging was closed out & the equity markets started to bubble. Money started pouring out of hard assets & into equities & this continues today albeit at a much slower rate.

So I say bring on the taper & as soon as possible & see how gold & the equity markets react.

For mine gold is looking like forming a 'loose' triple bottom here since bouncing of $1180. If it breaks $1250 convincingly then things could get interesting, however my money says we will see a bounce from here & my gut is telling me it will start today or tomorrow.

As always, proof will be in the pudding!