Gold Breaks Support

Last night gold fell through critical support at the $1250 level on the back of continued “taper”talk from the Fed.

Gold is now on track to sink down to the $1180 level and if that is breached it is then down to the $1050 level…and the best buying opportunity in a whole career of investing.

Bonds also shot up as “taper” talk always suggests less buying of bonds so thie price can rise toward its real market level. However the Fed was at pains to point out that interest rates would still stay low even after their bond buying program was over.

They want it both ways. I have said before and will say it again that there will be no “tapering” simply because the Fed will lose control of interest rates, which is far more important than any thing to do with economic strength or employment. The US government would go broke at normal interest rates, end of story.

God bless

Kevin

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