I agree with JS Kim. The Federal Reserve has painted itself in a corner, and there is no way they can taper in any meaningful way without popping all of the asset bubbles they’ve created.Therefore, I think gold is on it’s way back up, though it might not actually go up this month due to some pretend, or temporary tapering. Whether you agree or disagree with the gold price predictions poll, let us know in the comments below after you’ve voted in the poll of course.
Tapering is the new buzzword, which means the the Federal Reserve will reduce the amount of quantitative easing it is currently engaging in. The Federal Reserve’s program of quantitative easing has caused the size of its balance sheet to increase from its long-term average level of about $800 billion to its current balance of $3.5 trillion. The Fed had been purchasing $85 billion in bonds each month since September 2012, and recently reduced, or tapered, its purchases to $75 billion per month. the Fed said it will reduce its bond-buying program to $65 billion in February, down from $75 billion in January. Well, we’ll see how it turns out soon enough.
January spot gold ended: $1,245.90.
Will it go up or down by the end of February?
Result: Gold ended the month at $1,328.60.
- Up (74%, 26 Votes)
- Down (26%, 9 Votes)
Total Voters: 35