Gold and silver taking another steep dive upon opening in the Asian markets.
I see this being the result of one of two things.
- Traders foreseeing the inevitable tapering event that we are now less than 24 hours away from and selling while they can before the expected drop in metal prices post-taper. OR
- Prices being strategically beat down by paper gold so those stronger hands can scoop up the physical and position themselves for the ride up as the tapering will be surprisingly delayed.
I lean on the former. While there are still holdouts predicting there will be no tapering of the bond purchasing, I think it’s pretty clear that the Fed will announce a go-ahead of marginal tapering.
Only time will tell.