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20 Sep 2013
Gold driven back down on Bullard comments, "taper bounce" fades
FXstreet.com (London) - Gold has continued its decline today, pushed lower by hints from St Louis Fed chairman and FOMC voting member James Bullard that a small tapering of the Fed’s monthly asset purchases might be possible in October.
The gold price had seen some recovery earlier in the week, when the news that the Fed would not be going ahead of the much-anticipated tapering of its monthly asset purchases pushed up prices.
Gold currently stands at USD1338.30/oz, with potential for further downside.
The yellow metal has lost its shine in recent months as investors seek yield as global macro data strengthens and volatility abates.
It had been driven to historic record highs in September 2011 as a combination of European uncertainty, US debt ceiling deadlock and Middle Eastern tensions combined to make the perfect storm for haven flows into the safety of gold.
Though the threat of US debt ceiling bickering is once again o the horizon, increasing global confidence is going to make any upside support for gold very unlikely.
The gold price had seen some recovery earlier in the week, when the news that the Fed would not be going ahead of the much-anticipated tapering of its monthly asset purchases pushed up prices.
Gold currently stands at USD1338.30/oz, with potential for further downside.
The yellow metal has lost its shine in recent months as investors seek yield as global macro data strengthens and volatility abates.
It had been driven to historic record highs in September 2011 as a combination of European uncertainty, US debt ceiling deadlock and Middle Eastern tensions combined to make the perfect storm for haven flows into the safety of gold.
Though the threat of US debt ceiling bickering is once again o the horizon, increasing global confidence is going to make any upside support for gold very unlikely.