Nice post Mick49, most are putting gold's demise down to the POSSIBILITY of withdrawal of QE. Gold rallied on the first part of the testimony when they said QE was to continue & then got slammed when there was a hint that QE may be withdrawn or slowed by the end of the year. Unlikely in my book. My read on this is more that QE was helping pump up gold & other commodities however any QE impact has long left the POG now. What is really at play is the chasing of yield due to a ridiculously low interest rate & even still growth is struggling. If QE now is pumping up equities, it was always Bernanke's desire for this to happen & he is finally getting his wish, rightly or wrongly. If QE was withdrawn it would be equities imo that would be hurt most. Higher interest rates certainly won't help equities either & will make interest on the sovereign debt even less serviceable. QE created a bubble in gold which has now deflated & is now doing the same to equities imo. QE reminds me of farm subsidies, what happens when the subsidy is taken away?
MYG Price at posting:
3.8¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)