Daily Nugget – Merkel victory does nothing for gold price
by Jan Skoyles, TheRealAsset.co.uk
India’s gold imports are expected to begin climbing this week after the government met to clarify rules over the matter. Since June, when new import rules were implemented, official gold purchases have been at a standstill whilst smuggling has surged.
Following the ‘shock’ decision of the Fed last week, both gold and silver surged as speculators realised tapering wouldn’t go ahead this month. However by Friday profit taking had taken place as the same speculators realised tapering would happen, if not this month then in the coming ones. The yellow metal gave back around half of its gains that had come following the announcement.
Gold certainly suffered following Fed President James Bullard’s comments on Friday when he said that it had been a ‘close’ decision to not to scale back the monthly bond buying. He also said, unrealistically, that tapering for begin as soon as the next meeting in October.
