Surprise surprise – taper talks tapered!
Yesterday the US Fed chairman Bernanke made the comment that “highly accommodative monetary policy for the foreseeable future is what’s needed in the US economy”. Of course the US dollar subsequently fell (pushing up the Aussie) and Gold and Silver rallied. Mind you this is now the 4th consecutive day of gold rising and one starts to wonder if we’ve seen the bottom now. This is a complicated equation and throwing in manipulation by the bullion banks and it’s too early to call. What is becoming more apparent is what we’ve said all along, the fundamentals for gold and silver have not changed one bit for the medium to long term.