Gold fell 2% on Thursday. But, it may not be the potential of a Fed tapering to blame.
Gold dropped more than 2.5% on Thursday, coming perilously close to the $1,200 per ounce mark. This happened on the heels of a budget deal that may make it easier for the Federal Reserve Bank to taper its $85 billion monthly monetary stimulus program. While that may be negative for gold, there may be other fundamental reasons bullion is falling.
Gold has lost a third of its value in a steady decline that began in September, 2012 – well before any taper talk began.
According to Steve Cortes, founder of Veracruz TJM, gold has two problems: the economic situation outside the United States and the economic situation in the United States.
"All year, gold bugs have been hitting the markets windshield and I think they're going to continue to," says Cortes. "One of the main reasons is China and other emerging markets. Gold is largely an emerging marketRead More »from Forget the taper, here’s what’s really weighing down gold