Fed QE Tapering: Quanticlimax for Gold & Silver Bears?

Wednesday, 9/18/2013 12:31
Gold and silver rose on QE. So tapering must drive precious metal prices lower again, right…?
SO TODAY’s the day, writes Adrian Ash at BullionVault.
Ben Bernanke, head of the US central bank, will announce the beginning of the end for quantitative easing at this month’s policy meeting in Washington.
Everyone thinks so. Gold and silver prices seem to agree, drifting to new multi-week lows Wednesday morning in a reversal of their pattern when QE was ramped up from 2009 to 2012. And Bernanke pretty much said in June that QE’s end would start this month. Policy-makers have been talking about it since April.
Those two months loom large for anyone trading gold or silver. But looking at this week’s 4% drop so far, traders have to ask:
Is it a case of sell the rumour, buy the news?
It was always the reverse when QE was growing. Acting in what we christened “quanticipation“, gold and silver prices tended to rise ahead of the US Fed’s various QE launches (you remember – QE1, QE2, and so on). They then fell back once the announcement was made, only to resume their longer-term rise.
So the outlook today?
Read the entire article at Bullion Vaultshutterstock_130695908

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