Gold is quickly catching up in erasing the damage from late spring-early summer as it completes 2 consecutive monthly rises and is the 2nd best performing commodity so far this quarter, up 14% (after silver’s 20%).
The bearish case in gold has grown less straight forward than it was three months ago when US inflation drifted near 40-year lows and US-10-year yields drifted near 2.00%. Much has changed since then. The notion of Fed tapering is no longer regarded as a necessary threat to gold bulls and US dollar bears after the Fed has emphasized it will maintain accommodation for as long as it takes; and insisting rates aren’t rising before end of 2014.
