if the Fed is the biggest purchaser of bonds in the market tapering should be a negative for gold to the extent you would expect tapering to drive bond prices down and yields up and drive the dollar higher along with yields..............unless........the expectation of tapering was already priced into the market..........
Countering that we have tapering causing a potential drop in equities supporting the fear trade = gold up If the Fed tapers (as opposed to raising rates) and lets Inflation run hot (which it appears to be) = gold up (as real rates go further negative)
