5Yr TIPS inflation headed to zero beginning of this month and now reversing so gold seems to be favorable in a low net inflation environment. With the Feds reducing their bond holdings, surely that will drive up inflation through the credit spreads between corporate-Govt debt markets.
I was expecting dovish speak from Yellen but gold has now broken KEY support levels from the technicals. This change in fundamental isn't good for gold and simply picking a DOW top with the usual excuse of market crash has been speculated since I began reading this forum many moons ago. The US equity markets are continuously making new highs demonstrating the trends is not bending.
SO I see Yellen is indirectly raising rates through the pulling cash out of the markets by reducing bonds.
