Ugly...I am not feeling the love. Evariste - TopicsExpress



          

Ugly...I am not feeling the love. Evariste Lefeuvre Commodities Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...) Summary The end of QE should not be blamed for the fate of gold prices. The yellow metal is a poor hedge against inflation, has no stable correlation with risky assets returns and does not depend on the size of the Feds balance sheet. It is mostly driven by U.S. real yields and - almost naturally - the external value of the U.S. dollar. For those reasons, I expect the downward trend to continue below the 1,000 USD threshold. QE is over but it does not matter since, as can be seen in the chart below, the gold bubble busted several quarters ago (as did Nasdaq in the late 1990s and housing prices in the late 2000s). seekingalpha/article/2630195-triple-digit-gold?ifp=0
Posted on: Wed, 05 Nov 2014 17:40:08 +0000

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