QE tapering can be temporary/long term, it matters little as long as it happens. Everyone expects the initial reaction from QE tapering to be falling gold price, since everyone expects that reasoning it is highly likely to be self-fulfilling. If you want to fight against the herd/masses, hope you have lots of money.
QE tapering probably will significantly increase borrowing costs for everything from government to corporate bonds. Even the fear of that is raising bond yields already. I am also in view QE tapering is temporary, but how long until it starts again is anyone's guess, it can be months or years before it starts again. In the mean time higher yields will make bonds look alot more attractive than non yielding gold.
NCM Price at posting:
$10.73 Sentiment: None Disclosure: Held
