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  • slegermark slegermark Jan 3, 2013 6:23 PM Flag

    FOMC minutes state that QE3 will end in 2013!!!

    I was looking for the item that started the selloff. Here is the Rueters version.
    This is good news for our sector.

    * Fed concerns trigger sell-off

    * Some Fed policymakers suggest early end to stimulus

    By Frank Tang

    NEW YORK, Jan 3 (Reuters) - Gold prices fell more than 1

    percent Thursday on signs that Federal Reserve officials are

    increasingly concerned about the risks of the Fed's asset

    purchases on financial markets, reducing bullion's appeal as a

    hedge against inflation.

    Minutes from the Fed's December policy meeting showed a

    growing reticence about further increases in the central bank's

    balance sheet, which was expanded sharply in response to the

    financial crisis and recession of 2007-2009.

    The minutes also showed several officials thought it would

    be appropriate to slow or stop asset purchases well before the

    end of 2013, citing concerns about financial stability and the

    size of the balance sheet.

    "With the news that some policymakers suggested that the Fed

    could withdraw QE before the end of year, that put a dent on one

    of the underpinnings on gold, which is expansionary monetary

    policy," said Mark Luschini, chief investment strategist of

    Janney Montgomery Scott, a broker-dealer which manages $54

    billion in assets.

    Economic fears due to unprecedented Fed monetary stimulus,

    including printing money to buy assets - known as quantitative

    easing - has been a key driver in boosting gold, a traditional

    inflation hedge.

19.22+0.26(+1.37%)3:09 PMEDT