The chance that the Federal Reserve might undertake the dreaded “taper” has been on the market’s front burner for months. But strategists are still seeing Fed worry in a modest Tuesday morning gold selloff that’s sending the metal’s price down 0.7% to $1,373 recently.
“Gold traders worried about tomorrow’s Fed results are exiting early from positions,” writes RBC Capital Markets precious metals strategist George Gero to clients this morning. Gero also cites worries about lower imports of the metal in India, and about the effect of a stronger euro.
Shift away from the price action, though, and the signal the last few days from exchange-traded funds has been somewhat different. As Commerzbank’s commodity strategists note this morning, there’s been a slowdown in exchange-traded fund outflows over the past two days:
