Gold Bugs Refuse to Believe Taper Delay Has Any Life

Jacob Harper |

Gold continued its plunge Monday, continuing a drop that has continued largely unabated all month, save a significant one-day reprieve on Sept. 19.

On that day, the Federal Reserve announced they would not be tapering the $85 billion a month bond-buying program known as QE3. The precious yellow metal shot up on the concrete news from the Fed, gaining nearly five percent in 10 minutes, and ending the day up 4.5 percent for its biggest intraday gain in four and a half years.

Never one to be swayed for too long on actual data, gold’s rebound was tamped down the very next day by speculation. In this case, that speculation came from influential St., Louis Fed Chairman James Bullard, who iterated his opinion that the taper could still come as soon as that month. On Sept. 23 Federal Reserve Bank of New York President William Dudley added to the speculation, saying that the plan to eventually taper is "still very much intact,"

Gold dropped on Sept. 20, losing 2.7 percent and erasing over half of the gains made the day prior. That pessimism on the yellow metal has bled into this week, as investors refuse to believe the continuance of present-level QE3 can last. This pessimism countered another bit of concrete data, as the HSBC reported that manufacturing activity in China hit a six-month high.

On Dudley's remarks, December gold dropped .77 percent to settle at $1,322 an ounce. Gold has lost almost a third of its value this year.    

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
ILPMF Permanent TSB Group Holdings Plc 2.67 0.00 0.00 0


Emerging Growth

Singlepoint Inc

SinglePoint Inc is a mobile technology company engaged in mobile payments, mobile giving, and mobile bidding. It operates mobile commerce and communications platform to accept mobile credit card payments.

Private Markets


Voleo is a free download that allows you to form investment clubs with your friends, family, colleagues, classmates, teammates…basically anyone you know and trust. Invest and manage a stock portfolio…

The Green Organic Dutchman

The Green Organic Dutchman Ltd. ("TGOD") produces farm grown, organic cannabis for medical use. The company grows its high quality organic cannabis in small batches using craft growing, all natural…