Good Morning to all Mithril shareholders. The week ahead is busy...

Good Morning to all Mithril shareholders.
The week ahead is busy , many data will announced.
Most important the Nonfarm payrolls.
-Nonfarm Payrolls measures the change in the number of people employed during the previous month, excluding the farming industry. Job creation is the foremost indicator of consumer spending, which accounts for the majority of economic activity.
-A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

That will influence FED about tapering. But why tapering of QE is bad for gold ?
-When a central bank goes for tapering, they effectively embark in an exit strategy from their QE program. Net-net, they reduce policy accommodation and this is generally associated with higher observed real interest rates.
-Tapering = less QE = investors extrapolate a less friendly central bank = less policy accommodation = drop in inflation expectations and higher nominal rates required to own bonds = HIGHER REAL interest rates=Investors sell gold so to buy bonds.

Unfortunately , for institutional investors Bonds are the number One asset and not gold. Look what happened last week when FED raise the overnight reverse repurchase agreements just 0,05% = 5bps.
Gold is good only when negative returns on bonds are well below 1% for a long time. Is good to understand how bond market works . Otherwise gold price remains a mystery.

Good Week and hopefully no tapering on the horizon. Though that even talking slightly positive about tapering , instos sell gold and buy Bonds.