No, incorrect.

QE tapering means reduce the money supply.

If money that already circulating being reduced, then you will have huge problem in the economy, aka recession/depression already.
Money supply in norm day and most of the time is increasing one together with economy growth.
Economy growth, more money needed in the system.

no... qe taper means reducing the size of the continuous easing. not reducing the actual money in circulation.

usa's qe has more to do with new money buying back old bonds. google n u will find a couple of nice videos that explains it.

many countries do that, incl japan now. which currency strong or weak, it's all relative - which currency is in higher or lower demand.

This post has been edited by AVFAN: Sep 18 2013, 04:10 PM

If want to hedge against RM weakness, a direct own other currency like Usd, Aud, SGD, or overseas asset may be a better option instead of gold.
As gold is not directly hedged against RM weakness, as you can have gold is weak itself, so even though USD goes up against RM, you don't get any hedging effect on the RM weakness.

doing a bit of everything...

One more question:

"FOMC is expected to announce a $10 billion reduction in the monthly pace of its quantitative easing purchases, or QE, "

Does this mean the US will taper $10bil or reduce QE by $10bil and thus will prevent usd from weakening?

This post has been edited by hey_there: Sep 18 2013, 05:27 PM

us fed has been doing qe1-2-3 to the total amount of 3 trillion so far, i think.

the below news mean they will reduce monthly qe 85 bil to 75 bil, a tapering of 10 bil a month.

whether that is a lot or nothing, i have no idea. only that any taper by itself and itself only shud mean usd will not weaken, does not help gold price.

Ahh, I got a clearer picture now. Thanks

FOMC is coming 2AM, lets sleep well and wake up tml see how high the gold can hit la

Gold falls to 6-week lows as Fed stimulus verdict looms

Gold fell for the third consecutive session on Wednesday to a six-week low, as markets paused, expecting the U.S. Federal Reserve to announce a reduction, albeit small, in its bullion-friendly stimulus measures.

Traders said the gold market would stay in tight ranges as investors were unwilling to take fresh positions before the outcome of the Fed's policy review. Chairman Ben Bernanke will hold a news conference later today.

Gold slips to $1,290 as India slaps 15% duty - New Delhi acts to protect interests of small artisans

Spot gold price tumbled below the psychological $1,300-mark on Wednesday for the first time in more than a month after the gold’s biggest consumer, India, hiked import duty on gold and silver jewellery by another 5 per cent on Tuesday in a bid to safeguard local jewellery-makers.

India yesterday hiked the import duty on gold and silver jewellery to 15 per cent from the earlier 10 per cent “to protect the interests of small artisans.”

According to the official statement, authorities said an import duty differential between finished jewellery and solid metal is needed to protect millions of Indian artisans who depend on the labour-intensive industry.

how high? seems like a down trend from now on.. at least for a little while.

High? Fomc meeting means bad news for gold.

At best case no taper means gold status quo.
Expected to taper by 10 bil, means gold will go down a bit
At worst case taper by 20 or more bil, gold will nosedive.

So how?

Now already USD1296/oz & going lower

This post has been edited by davinz18: Sep 18 2013, 11:18 PM

what was the lowest this year?

How sure r u that it will go up?

usd 1196/oz on 25 June

http://goldprice.org/live-gold-price.html (change the time scale to daily)

i see. think it will go till that level again? haha

Federal Reserve maintains stimulus.

GOLD PRICE up? down?

U r damn right. I take a peek at the price b4 I sleep at 2am and the price shot straight to 1345/oz from 1300/oz. luckily I've bought some yesterday morning at 1298/oz

No Taper.

The Federal Reserve's September FOMC statement is out.

The Federal Reserve decided to refrain from tapering quantitative easing this month, saying it wanted to see more evidence of the economic growth process before beginning a reduction in bond buying.

The FOMC said tightening of financial conditions from rising rates could slow growth, and reminded everyone that "asset purchases are not on a preset course."

Right now, stocks, bonds, and gold are surging, and the dollar is tanking.



Excerpts taken from : http://www.businessinsider.com/september-fomc-statement-2013-9



Price of gold is currently USD1362/oz and still rising ....