Gold holds strong despite taper announcement

After months of vacillation the Fed finally announced last night it would commence tapering QE in January with a $10b/month reduction of the current $85b/month.  That gold didn’t plummet could mean a number of things – that this was already priced in, that reducing the money printing supporting the Ponzi scheme just adds to the reason to hold gold, or waiting to see if it is sustained – on any account many will no doubt see this as confirmation that the bottom for gold is behind us.  Keeping in mind the language on ZIRP (zero interest rate policy) was actually strengthened last night to being maintained “well past” the previous 6.5% unemployment target. i.e. whilst tapering would normally see an increase in interest rates they have committed categorically to keep them near zero for many years to come.  That of course means REAL interest rates will be negative.  This is all a positive environment for gold…