It is all over again! Remember a couple of months ago when everyone was expecting the Fed would ease QE, the Treasury 10-year yield fiercely jumped up to almost 3% and gold/silver fell like a stone? Then Bernanke surprised almost everyone (but not me) that the Fed did not ease QE at all. The Treasury yield dropped all the way down to about 2.5% as I predicted and gold/silver jumped high in revenge!
Well, the market is playing this game again. In about 2 weeks time, the Fed will meet again and herd investors listen to and believe again the pundits talking about QE easing at this Dec Fed meeting. The Treasure yield is again crippling up to almost 2.9% and gold/silver is getting decimated once more. My bet? No way the Fed will ease the QE and the market will be surprised once again.
I expect gold/silver will fight back violently with an explosive moonshot, at least for a short term. If you are a trader, this may be a good opportunity to buy DGP, a double long gold ETF for some quick money.
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