Skip to main content

Gold

The Dow, S&P and NASDAQ are all up healthily today.

 The monetary conditions that are creating the boom in equities is, as we go deeper into quantitative easing is turning out now to be bad for gold and silver. The effect has operated on two curves, gold on one and equities on another.

The chief fundamental driver in the gold market today was the nuclear accords the West has almost signed with Iran. There is a subplot on the international military diplomacy stage, as well: China and Japan.

Flying in stealth formation with other facets of the FOMC minutes from October's meeting, appeared a few lines that should be at least intriguing to gold investors. They may sketch out Ben Bernanke's parting gift to the economy and perhaps to those who are hoping gold will price higher in the months to come.

Without any fresh news, we are left with some odds and ends on fundamentals.

The decision to taper the pace of asset buying will come when economic indicators say that the economy is clearly gaining momentum.